Circular Services buys Midwest Fiber Recycling

Circular Services, New York-based Closed Loop Partners’ arm that develops and operates circular economy infrastructure in the U.S., has expanded into the Midwest market with the acquisition of Midwest Fiber Recycling, with facilities in Decatur, Normal, Urbana and Peoria, Illinois, and Terre Haute, Indiana. The purchase grows the portfolio of material recovery facilities (MRFs) under Circular Services’ recycling arm, Balcones Recycling.

Amy Wagner, chief financial officer and executive vice president of Business Development & Operations at Circular Services tells Recycling Today that Circular Services has an established and growing presence on the East Coast and in the South and Southwest U.S. “The Midwest is a growing region with a significant amount of recyclable materials that should be reused and recycled into new products and packaging and home to many critical players in the value chain, such as mills and reclaimers," she says. "Expanding Circular Services into this region will help ensure that more communities and businesses have access to our approach to holistic materials management.”

Midwest Fiber was established in 1990 when Ron and Linda Shumaker purchased the Decatur Recycle Paper Co. With their sons, Chief Operating Officer Mike Shumaker and Director of New Business Development Todd Shumaker, they have grown the company, which services residential single-stream customers and commercial properties via a dedicated collection fleet.

In addition, Midwest Fiber provides document destruction and recycling services through sister company Confidential On-Site Paper Shredding (C.O.P.S.), which it established in 2003, and has a recycled material brokerage arm.

The company added a collection and baling plant in Peoria in 2005 and constructed a single-stream MRF in Normal in 2011. It purchased a facility in Terre Haute, Indiana, in 2015 and the acquired Community Resource Inc. of Urbana in 2017.

In 2019 Midwest Fiber announced plans to invest $3 million in equipment additions and upgrades at its MRF in Normal. Earlier this year, the company announced plans to partner with Louisville, Colorado-based Amp Robotics to install four robotic sorters at that facility. Across its sites, Midwest Fiber says it processes 7 million pounds of material weekly.

Wagner says Midwest Fiber Recycling is a well-respected company that has been operating for more than 30 years. “We were particularly impressed with the management team, which is both values-aligned and focused on delivering excellence through a wide range of services––from collection and shredding to processing and brokerage," she says. "Midwest Fiber is focused primarily on recycling, and their dedication to keeping materials in circulation fits extremely well with Circular Services’ focus on holistic materials management.”

Following the acquisition, the company's management team will remain in place, partnering with the Circular Services team and leveraging its broader platform to continue its growth.

“Our goal is to support the current Midwest Fiber team," Wagner says. "We are excited to have Todd and Mike and their extended team join Circular Services. They employ over 100 full-time staff and 40 part-time staff and will continue to run the Midwest Fiber operations as they integrate with Circular Services and Balcones Recycling.”

“Todd and I waited to find the right partner,” Mike Shumaker says. “The singular focus of Circular Services and Balcones Recycling on advancing robust circular materials management, as well as their longstanding experience operating recycling infrastructure, made them a great fit. We look forward to working alongside their team and leading our family business into the next chapter.”

“The Shumakers have built and led a great company with an excellent reputation as they served their surrounding communities for over 30 years,” Balcones Recycling CEO Tom Outerbridge says. “We are proud to join forces with Mike, Todd and their management team and leverage our collective expertise and growing portfolio of facilities to offer custom, effective recycling solutions to more municipalities, counties and small-to-large businesses.”

Circular Services operates several companies that offer holistic circular materials management services, helping municipalities and businesses recycle paper, metal, glass, plastics, organics, textiles and electronics. Among these companies is Austin, Texas-based Balcones Recycling, Circular Services’ recycling company.

Prior to this acquisition, Balcones Recycling already was one of the largest independent recycling companies in the country, handling more than 1 million tons of recyclables each year through its operations in New York, New Jersey, Florida, Texas, Arizona and Arkansas. Following this acquisition, Balcones Recycling will operate 18 MRFs across the U.S.