Municipal

Photo: Recycling Today archives

Investors led by the Closed Loop Leadership Fund close on SMR acquisition

The Closed Loop Leadership Fund LP, a private investment fund managed by Closed Loop Partners (CLP), New York, has led a consortium of investors in acquiring a majority stake in Sims Municipal Recycling (SMR) from Australia-based Sims Ltd., which remains a minority stakeholder in SMR. The deal was first announced in late December 2021, with the close date originally anticipated for the third quarter of this year.

CLP says its acquisition of the 50.46 percent share of SMR for $45.4 million is expected to further modernize circular economy infrastructure and service in the New York-New Jersey Metro region, where SMR operates three facilities, and in Florida, where it has one facility. CLP also expects the investment to expand SMR’s operations into new markets.

SMR’s Brooklyn material recovery facility (MRF) is the largest dual-stream recycling facility in North America. The company also manages the long-term New York City residential recycling contract, which is the largest municipal recycling contract in North America. In the New York-New Jersey Metro region, SMR also operates a MRF in Jersey City, New Jersey, two marine transfer stations and a glass aggregate facility.

Jessica Long, chief strategy officer and managing director at CLP, says the company has had a longstanding relationship with SMR. Maite Quinn, a CLP managing director, formerly worked at the company as director of business development and sales. “Over time, with both organizations based in New York City, both parties determined this would be a great partnership to further scale the circular economy in New York and beyond.” 

Long, chairperson of the SMR board, says, “Closed Loop Partners’ ecosystem of investors—including strategic corporate partners like Nestlé, PepsiCo Beverages North America, Microsoft and Unilever, pension funds, family offices and foundations—are all interested in developing sustainable business models and markets for recycled content, keeping valuable materials out of landfill. This investment, coupled with the existing portfolio of Closed Loop Partners’ managed investment funds, will enable SMR to expand its services, accelerating the development of circular economy infrastructure in the United States.” 

SMR President Tom Outerbridge says, “SMR will continue to provide important recycling services to New Yorkers and communities across the NY-NJ metro region and Florida. We now have an exciting opportunity to combine our strong operating history with Closed Loop Partners’ extensive resources to strengthen circularity for the postconsumer municipal waste stream. Together, we can accelerate the modernization of recycling across the United States to close the loop on valuable materials and build a truly circular economy.” 

CLP says SMR’s expansion in the coming years is expected to create additional jobs in recycling and manufacturing. When asked what form CLP envisions SMR’s expansion taking and what kind of timeline it will entail, Long says, “At SMR, we see numerous expansion opportunities, including increasing the collection of valuable materials, like metals, glass and plastics. In a circular economy, we are also excited to expand the scope of materials recovered, including food waste and textiles.” 

The investment was enabled by a group of investors, including CLP- managed investment funds, such as the Closed Loop Leadership Fund and the Closed Loop Circular Plastics Fund, and the Partnership Fund for New York City, among others. It is the Closed Loop Circular Plastics Fund’s first investment.

Photo courtesy of Rumpke

Rumpke to build recycling center in Columbus, Ohio

Cincinnati-based Rumpke Waste & Recycling has announced plans to construct a $50 million recycling facility in Columbus, Ohio. Called the Rumpke Resource Recycling Center, the facility is expected to open in 2024, said Andrew Rumpke, area president of the company.

The material recovery facility (MRF) is expected to expand the company’s recycling capabilities from 30 tons to 50 tons per hour. The MRF will recover various forms of scrap, such as plastic, metal, cartons, paper and glass. It will use ballistic separators, optical sorters and artificial intelligence to sort secondary materials as well. However, it’s unclear which companies will supply the equipment at this time.

“[This facility] will be the most technologically advanced, state-of-the-art recycling center in the United States,” Rumpke said during a press conference Feb. 8 at Rumpke Waste’s current MRF on East 5th Avenue.

The facility will be 200,000 square feet and include a research and development center in collaboration with The Ohio State University Sustainability Institute, a career and training center and a creative education center in partnership with the COSI Science Center. 

Rumpke Waste also is donating $100,000 to Ohio State to fund scholarships and plans to collaborate with the university to educate students on waste recycling technology at the new facility. The career and education facility will assist Ohio State students in finding careers in the waste and recycling industry after graduation.

“The Rumpke Recycling Resource Center will ensure recycling capacity to serve the long-term needs as the region grows to over 3 million in population throughout the next 20 years,” Rumpke said. “Our new recycling facility is strategically designed to meet the needs of Columbus and Franklin County, residents, local governments as well as the demands of the commercial and industrial business growth in central Ohio.”

When the new facility opens, many operations will continue at Rumpke Waste’s existing Columbus facility.