Rizzo Acquires Royal Oak Recycling

Rizzo Environmental Services Inc., Sterling Heights, Mich., has acquired Royal Oak Recycling, Royal Oak, Mich., which was incorporated as V&M Corp. Financial terms of the transaction were not disclosed. (Royal Oak was profiled in the January 2013 issue of Recycling Today.)

Rizzo Environmental Services, a part of holding company Kinderhook Industries LLC, provides residential curbside and commercial solid waste and recycling services. The company currently serves 31 municipalities in three counties in southeast Michigan. Royal Oak Recycling processes scrap paper, plastic and metals in the Midwest.

Rob Michalik, managing director of Kinderhook Industries, says, “The acquisition of Royal Oak will launch Rizzo into the recycling market with significant scale. We look forward to partnering with the Royal Oak management team and getting the opportunity to leverage their recycling industry expertise to help Rizzo expand its service offerings in the recycling sector.”

Chuck Rizzo Jr., CEO of Rizzo Environmental Services, adds, “Since its founding, Royal Oak has maintained a reputation for delivering extraordinary customer service. Royal Oak has been serving the Midwest region for over 75 years and we are excited to welcome the Royal Oak team to Rizzo.”

A spokesman for Rizzo says the acquisition of Royal Oak is opportunistic as more communities trend toward increasing their recycling efforts. The addition of Royal Oak’s processing capabilities will fit in effectively with Rizzo’s collection operations, he adds.

“Royal Oak’s longstanding customer relationships and exceptional management made this acquisition very attractive for Rizzo,” says Cor Carruthers, managing director at Kinderhook Industries. “The acquisition of Royal Oak enables Rizzo to further diversify its service offerings and thus control more of its collected [materials] stream.”

The acquisition includes two Royal Oak facilities in Michigan – one in Royal Oak and one in White Lake.

Habib Mamou, president of Royal Oak Recycling, will serve as the head of Rizzo’s recycling division. “Habib brings years of experience to the Rizzo Team,” Chuck Rizzo says. “His knowledge of the industry coupled with our position in this market as the fastest growing waste hauler makes this acquisition very exciting.”

Along with the acquisition of Royal Oak, Rizzo Environmental Services is in the process of siting a transfer station and single-stream recycling facility in Pontiac, Mich., at a closed General Motors facility that formerly manufactured the Pontiac Fiero.