AZ firm advised Friedman Recycling Companies with sale of TX, NM recycling operations
PHOENIX, ARIZONA — CapMatrix Ltd, a full-service capital markets and corporate strategic advisory firm headquartered in Phoenix, Arizona, has facilitated the successful sale of two valuable, out-of-state assets for the Phoenix-based Friedman Recycling Companies.
The sale transfers ownership of Friedman’s Texas and New Mexico municipal recycling operations to Waste Connections, Inc. (TSX/NYSE).
While financial terms of the deal were not disclosed, the operations sold by Friedman Recycling Companies include state of the art municipal recycling facilities (MRFs) located in El Paso, Texas, and Albuquerque, New Mexico, which collectively process more than 115,000 tons of recycled consumer and commercial material annually.
The transaction, managed by CapMatrix, is an example of an Arizona business engaging an Arizona-based strategic advisory firm to facilitate a sale. Morris Friedman, president of Friedman Recycling Companies, said local knowledge, proximity and strategic alignment were key factors behind his decision to work with an Arizona-based firm, rather than an out-of-state firm, for this specific transaction.
“This company is a part of our family, so when we made the strategic decision to divest our out-of-state assets and focus our energies at home here in Arizona, it was important to us that our strategic advisors honor and respect what we’ve built while searching for the right buyer,” Friedman said. “The team at CapMatrix was completely aligned with us from beginning to end, diligently worked the process of vetting potential buyers and kept everyone focused on the deadline for a closing. We couldn’t have done it without them.”
Waste Connections, Inc., the third largest solid waste management company in North America, already had substantial operations in its home state of Texas, but was looking to expand in El Paso. As part of its due diligence, CapMatrix understood that the company was also actively pursuing new opportunities in neighboring New Mexico, specifically Albuquerque.
The El Paso facility, which opened in 2006, spans nine acres and 49,000 SF. It handles municipal recycling operations for El Paso and Las Cruces. The 90,000 SF facility in New Mexico is set on 12.5 acres and handles recycling operations for the greater Albuquerque area.
Deron Bocks, president and managing partner at CapMatrix, said he and his firm were proud to represent Friedman in the sale, particularly because it bucks the trend of Arizona businesses using out-of-state strategic advisory firms.
“At CapMatrix, we pride ourselves on our ability to understand the unique dynamics of privately-held, and often family-owned, businesses by working closely with them to navigate complex transactions,” Bocks said. “We appreciate that the Friedman’s trusted us with this opportunity, we’re excited that we were able to execute a successful transaction for all parties involved, and we truly embrace our position as a local strategic advisory option for Arizona businesses in need of transactional representation.”