Winters Brothers (Oak Ridge) - Comprehensive Analysis Report
Summary
Winters Brothers (Oak Ridge) was a privately held waste disposal and recycling business with a history spanning over seven decades, established in 1950. Its mission was dedicated to fostering a cleaner and greener environment for future generations. The company specialized in comprehensive solid waste and recycling services, serving commercial, residential, industrial, and municipal clients. Winters Brothers had established a significant presence and a strong reputation, particularly across Long Island, New York, where it grew to become the largest waste management firm in the region. Headquartered in West Babylon, New York, prior to its acquisition, the company played a crucial role in local environmental services. In July 2024, Winters Bros. Waste Systems was acquired by WM (Waste Management), North America's leading environmental solutions provider, integrating Winters Brothers' extensive operations into WM's national platform and signaling a new phase for its established services.
1. Strategic Focus & Objectives
Core Objectives
Winters Brothers focused on delivering comprehensive solid waste and recycling services aimed at creating a cleaner, greener environment. Post-acquisition by WM, the combined entity’s objectives include centralizing core corporate functions, standardizing business practices, improving operating efficiencies, and enhancing overall productivity. A key long-term goal is to maintain local customer decision-making while leveraging the benefits of a larger national platform.
Specialization Areas
The company specialized in a full spectrum of solid waste and recycling services, including garbage collection, roll-off container services, dumpster rental, and trash removal. A core expertise also involved the operation of transfer stations and recycling centers. Winters Brothers developed unique value propositions through its extensive transportation network, which included a fleet of over 200 vehicles equipped for diverse pickups and advanced rail-based waste transfer solutions.
Target Markets
Winters Brothers primarily served commercial, residential, industrial, and municipal customers. Its strongest market presence was on Long Island, New York, where it was recognized as the largest waste management firm. Through strategic acquisitions, the company also expanded its reach into Connecticut.
2. Financial Overview
Funding History
Winters Bros. received a total of $71.4 million in funding across four rounds. Key investors included Clairvest and McKenna Gale. The latest funding round was a Series C in 2017, with participation from Advantage Capital.
Prior to its acquisition, Winters Bros. Waste Systems' estimated annual revenue was approximately $13.8 million. On July 15, 2024, WM acquired Winters Bros. Waste Systems for $550 million. Clairvest, a private equity firm that partnered with Winters Bros. in 2015, reported proceeds from the sale to WM totaling $191 million, achieving a 4.0x Multiple on Invested Capital and a 192% Internal Rate of Return (IRR) from their investment.
3. Product Pipeline
Key Products/Services
Garbage Collection: Comprehensive collection services for residential, commercial, industrial, and municipal clients. Utilizes trucks with robotic arms for efficient bin collection.
Roll-Off Containers & Dumpster Rental: Provides various sizes of containers for waste disposal, particularly for construction projects and large-scale cleanups.
Trash Removal: General waste removal services tailored to customer needs.
Recycling Services: Operation of recycling centers dedicated to processing recyclable materials, contributing to environmental sustainability.
Transfer Stations: Management of facilities for temporary deposit and consolidation of waste prior to transport to landfills or processing centers.
Waste Transportation: Utilizes a diverse fleet of over 200 vehicles, including trucks equipped with robotic arms and flatbed trucks for oversized waste. Also developed rail-based waste transfer solutions, including the acquisition of Brookhaven Rail LLC in 2020. This allows for efficient, high-volume waste movement, especially important with landfill closures.
4. Technology & Innovation
Technology Stack
Winters Brothers leveraged a robust transportation and processing infrastructure. This included a fleet of over 200 vehicles featuring advanced trucks with robotic arms for automated collection of trash bins and dumpsters, alongside flatbed trucks designed for large or construction waste. The company strategically focused on rail-based waste transfer solutions, utilizing rail lines such as the Bushwick Branch in New York and the Housatonic Railroad's Maybrook Line in Connecticut under contract. An affiliate, Shamrock Rail, acquired Brookhaven Rail LLC in 2020, controlling rail operations at Brookhaven Rail Terminal in Yaphank, NY. There were also plans to develop an adjacent waste-to-rail transfer facility. The integration with WM is expected to accelerate the adoption of technology to further enhance services on Long Island.
5. Leadership & Management
Executive Team
Sean Winters: Chairman and CEO at the time of the WM acquisition. Instrumental in guiding the company and emphasizing the merger as a strategic move to accelerate technology application and enhance services.
Jimmy Winters: Executive Vice President at the time of the WM acquisition. Highlighted the merger's potential for capitalizing on business opportunities, improving productivity and operating margins, and advancing strategic priorities.
* Joe Winters: Former Chairman and CEO. Joe Winters was a pivotal figure in the company's growth, particularly in reacquiring the Long Island assets of Progressive Waste Solutions in 2015. He passed away in 2021.
Other key contacts mentioned prior to the acquisition included Dan Schaefer (Community Relations Manager), Diane Busacca, Matt Farley, Patrick Fazio (Business Development), Marco Gutierrez (Human Resource Manager), Lisa Mangia, Al Neri (Sales Manager), Kevin Nolan (COO), Val Petry, Kenneth Rothwell, and Steve Soucy (CFO).
Recent Leadership Changes
Joe Winters, the former chairman and CEO, passed away in 2021. Following his passing, the Winters family continued to expand the business, with Sean Winters assuming the role of Chairman and CEO, and Jimmy Winters serving as Executive Vice President leading up to the acquisition by WM in July 2024.
6. Talent and Growth Indicators
Hiring Trends and Workforce
Prior to its acquisition, Winters Bros. Waste Systems employed over 500 people and operated an estimated 275 trucks across Long Island and parts of New York City. In December 2022, the employee count was reported as 151, consisting of specific legal entities with 38 and 113 employees, respectively. The company demonstrated significant growth through strategic acquisitions, completing 11 deals since 2015 and substantially increasing earnings through tuck-in acquisitions. The merger with WM is expected to provide enhanced career opportunities for employees due to integration within a larger, national organization.
7. Social Media Presence and Engagement
Digital Footprint
Winters Bros. maintained a social media presence on platforms such as X (formerly Twitter) and Facebook. These platforms were utilized for brand messaging and community engagement.
8. Recognition and Awards
Industry Recognition
Winters Bros. achieved significant recognition for its market leadership, becoming the largest waste management firm in Long Island, NY. Its strategic partnership with the private equity firm Clairvest underscored the company's success in attaining the #1 market position and generating robust financial returns. Clairvest's investment, for instance, realized a 4.0x Multiple on Invested Capital and a 192% Internal Rate of Return, highlighting the company's strong performance and attractive growth profile.
9. Competitive Analysis
Major Competitors
Prior to its acquisition by WM, Winters Bros. primarily competed with major players in the waste management industry, including WM (Waste Management), Republic Services, and Clean Harbors. Following the July 2024 acquisition, Winters Bros. Waste Systems is now an integrated part of WM, one of North America's leading environmental solutions providers, shifting its competitive dynamics from an independent entity to a component of a larger national platform.
10. Market Analysis
Market Overview
The waste management market in New York, particularly Long Island, is characterized by significant dynamics. Key factors include the anticipated closure of a major landfill and evolving competitive landscapes, such as the implementation of commercial waste zones in New York City. Winters Bros. had proactively focused on developing rail-based transfer solutions as a strategic response to the impending closure of the Brookhaven Landfill on Long Island. The region presents attractive business opportunities, and the vertically integrated operational model established through the merger with WM is considered essential for ensuring a resilient solid waste system for Long Island.
11. Strategic Partnerships
Winters Brothers demonstrated a history of strategic collaborations and growth through acquisitions. In 2011, it expanded its operations into the Connecticut market by acquiring 25 waste disposal companies. A substantial partnership was formed in 2015 with the private equity firm Clairvest, which supported Winters Bros. in reacquiring the Long Island assets of Progressive Waste Solutions. Clairvest partnered with the Winters family over three separate partnerships spanning 18 years, seeing the company achieve the #1 market position in Long Island after completing five transformative acquisitions since 2015. In 2020, an affiliate, Shamrock Rail, acquired Brookhaven Rail LLC. Recent acquisitions in 2022 included Emil Norsic and Son, along with two rail-served transfer stations from WIN Waste Innovations. The most significant strategic partnership culminated in the merger with WM on July 15, 2024, which fully integrated Winters Bros.' operations into WM's national service platform.
12. Operational Insights
Winters Bros. operated a vertically integrated waste management system encompassing collection, transfer, and recycling. The company managed six recycling centers and twelve transfer stations, and utilized rail lines for waste transportation in both New York and Connecticut. With the acquisition by WM, these operational insights now merge with WM's broader capabilities. The integration has created a unified operations platform designed to enhance productivity and operating margins by combining the best practices of both companies. This vertically integrated model is vital for establishing a robust and resilient solid waste system for Long Island.
13. Future Outlook
Strategic Roadmap
As an integral part of WM, Winters Bros. is strategically positioned to leverage an integrated operations platform, benefiting from WM's extensive national service network and presence across the United States. This integration offers substantial opportunities to internalize significant waste volumes and deliver environmentally sound solutions to customers. The strategic roadmap includes accelerating the application of technology to enhance services on Long Island. The merger is also set to provide enriched career opportunities for employees and ensure continued investment in the business and its workforce. WM will concentrate on centralizing core corporate functions and standardizing business practices to generate operating efficiencies and boost productivity, while simultaneously maintaining strong local customer engagement. This strategic move further solidifies WM's presence in the New York market, opening up potential new avenues within New York City's competitive waste zones.
