Regional trash roll-ups are treasure to national consolidators
Waste assets are trading hands, with Clairvest (CVG) netting $38M from the sale of Star Waste - after growing revenue >3x through eight acquisitions in the past four years. Big players are willing to pay up for scaled local platforms, resulting in a $2 per share book value gain post-close - further widening the discount CVG trades at. GFL’s acquisition of Frontier Waste is a perfect example, adding a strong regional player (Texas) to its national footprint. The company has added ~$450M of revenue through M&A YTD, offsetting slowing organic growth and adding density in its focus markets - which should translate to improved margins once the acquired platforms are integrated.
