Closed Loop Partners announces their acquisition of Agri-Cycle, a premier provider of organics collection for commercial & industrial sectors across the U.S. The acquisition was completed by Closed Loop Private Equity. Since its inception in 2013, Agri-Cycle has expanded significantly, now operating 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. They serve over 850 commercial and industrial customers, including Hannaford and other leading national players, addressing the ~$110 billion market for food waste management within the food industry.
Agri-Cycleâs acquisition takes place as strong regulatory tailwinds, 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% of all food in the U.S. goes to landfill, equivalent to an estimated $340 billion in value and responsible for 58% of landfill methane emissions released to the atmosphere. With only 27 years of median landfill capacity remaining in the U.S.ââand less in population centersââthe need for scaled circular food waste management services is critical.
Following the acquisition, Agri-Cycleâs management team will partner with Closed Loop Partners to expand the companyâs reach and services. With the firmâs deep experience in running circular economy businesses across a range of materials, and extensive ecosystem of the worldâs largest corporations, institutional investors and notable family offices, Agri-Cycle has strategic support at a pivotal moment of expansion.
This is Closed Loop Private Equityâs most recent platform acquisition, employing a buy-and-build strategy to partner with companies and scale platforms and enabling technologies across plastics & packaging, circular technology, food & agriculture, the built environment, energy efficiency, textiles and healthcare, aiming to develop, accelerate and modernize circular supply chains and recycling & reuse infrastructure.
âClosed 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.,â said Jackson Pei, Co-head of Closed Loop Private Equity at Closed Loop Partners.
âThe 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,â said Daniel Phan, Co-head of Closed Loop Private Equity. âWe look forward to supporting Agri-Cycleâs 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,â added Derek Trott, Vice President of Closed Loop Private Equity.
Closed Loop Private Equityâs acquisition of Agri-Cycle marks a key milestone for Closed Loop Partnersâ work to advance organics circularityââa key focus area for the firm alongside plastics & packaging, textiles and electronics. The firmâs 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.
âOur 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,â said Dan Bell, CEO of Agri-Cycle. âAgri-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.â