Closed Loop Partners acquires Agri-Cycle's organic waste management platform
The acquisition accelerates the mission to divert organic waste from landfills and convert resources into energy
Closed Loop Partners has acquired Agri-Cycle, a provider of organics collection for commercial and industrial sectors across the U.S.
Agri-Cycle's organic waste collection platform
Since its inception in 2013, Agri-Cycle has expanded significantly and now operates as a leading provider of organics management services in the U.S. The company collects organic waste from over 2,400 locations across 14 U.S. states, and provides clients with education, collection, processing, and disposal services, as well as data analytics and reporting to maximize cost savings and landfill diversion.
Agri-Cycle's acquisition takes place as strong regulations, including landfill disposal bans and organics diversion mandates in states including Maine, New Hampshire, Vermont, and Massachusetts, accelerate demand for organics collection. Today, up to 40 percent of all food in the U.S. goes to landfill, equivalent to an estimated $340 billion in value and responsible for 58 percent of landfill methane emissions released to the atmosphere. With only 27 years of median landfill capacity remaining in the U.S. — and less in population centres — the need for scaled circular food waste management services is critical.
Following the acquisition, Agri-Cycle's management team will partner with Closed Loop Partners to expand the company's reach and services. With the firm's deep experience in running circular economy businesses across a range of materials, and an extensive ecosystem of the world's largest corporations, institutional investors, and notable family offices, Agri-Cycle has strategic support at a pivotal moment of expansion.
Expanding waste diversion and energy creation across the U.S.
"Closed Loop Partners is proud to back Agri-Cycle, and partner with their management team to accelerate their path to scale and drive meaningful impact for organics circularity in the U.S. Through this acquisition, we can together capture the significant market opportunity for food and organic waste diversion in the U.S.," said Jackson Pei, co-head of Closed Loop Private Equity at Closed Loop Partners.
"The deep sector expertise and long tenured industry relationships of the Agri-Cycle team have laid a strong foundation for a platform positioned to scale both organically and through M&A," said Daniel Phan, co-head of Closed Loop Private Equity. "We look forward to supporting Agri-Cycle's growth into a large national player for organics management, executing on a robust platform of acquisition targets and creating an ecosystem of best-in-class operating businesses in the industry," added Derek Trott, vice president of Closed Loop Private Equity.
Closed Loop Private Equity's acquisition of Agri-Cycle marks a key milestone for Closed Loop Partners' work to advance organics circularity — a key focus area for the firm alongside plastics and packaging, textiles, and electronics. The firm's broader work in organics spans solutions at every point of the value chain, including platforms to support regenerative food production, innovations to extend food shelf life, technologies to mitigate post-consumer organic waste, compostable packaging field tests, and composting and anaerobic digestion infrastructure.
"Our partnership with Closed Loop Partners marks the next phase of growth for Agri-Cycle Energy, as we work with their team and ecosystem toward our shared goal of driving a circular economy for organics," said Dan Bell, CEO of Agri-Cycle. "Agri-Cycle has provided services to keep thousands of tons of food in circulation over the last decade. As the organics waste challenge grows more urgent, we look to continue meeting market demand, and work alongside Closed Loop Partners to accelerate impact at scale."
