Compiled by Matt Loeschman
PHOENIX — CapMatrix Ltd., a Phoenix-headquartered strategic capital markets and corporate advisory firm, facilitated the sale of two out-of-state assets for Phoenix-based Friedman Recycling Companies.
The sale transfers ownership of Friedman’s municipal recycling operations in Texas and New Mexico to Waste Connections, Inc.
Although financial terms of the agreement were not disclosed, the operations sold by Friedman Recycling Companies include state-of-the-art municipal recycling facilities located in El Paso and Albuquerque, which collectively process more than 115,000 tons of consumer materials. and commercial recycled per year.
The transaction, handled by CapMatrix, is an example of an Arizona company engaging an Arizona-based strategic consulting firm to facilitate a sale. Morris Friedman, president of Friedman Recycling Companies, said local knowledge, proximity and strategic alignment were key factors in his decision to work with an Arizona-based company, rather than an out-of-state company, for this specific transaction.
“This company is part of our family, so when we made the strategic decision to divest our out-of-state assets and focus our energies at home here in Arizona, it was important to us that our strategic advisors honor and respect this that we’ve built while looking for the right buyer,” Friedman said.
“The CapMatrix team was completely aligned with us from start to finish, worked diligently through the process of vetting potential buyers and kept everyone focused on the closing deadline. We couldn’t have done it without them. “
Waste Connections, Inc., the third-largest solid waste management company in North America, already had significant operations in its home state of Texas, but was looking to expand into El Paso.
As part of its due diligence, CapMatrix understood that the company was also actively seeking new opportunities in neighboring New Mexico, particularly Albuquerque.
The El Paso facility, which opened in 2006, spans nine acres and 49,000 square feet. He manages municipal recycling operations for El Paso and Las Cruces.
The 90,000 square foot facility in New Mexico is located on 12.5 acres and handles recycling operations for the greater Albuquerque area.
Deron Bocks, president and managing partner of CapMatrix, said he and his company are proud to represent Friedman in the sale, particularly because it bucks the trend for Arizona companies to use out-of-state strategic advice.
“At CapMatrix, we pride ourselves on our ability to understand the unique dynamics of private, and often family-owned, businesses, working closely with them to manage complex transactions,” Bocks said.
“We appreciate that the Friedmans trusted us with this opportunity, we are delighted that we were able to execute a successful transaction for all parties involved, and we truly embrace our position as a local strategic advisory option for businesses in Arizona in need of transactional representation.”