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AIG Highstar buys waste disposal company for $470m

The New York- and Houston-based private equity firm has recapitalized Advanced Disposal Services, replacing the company’s existing shareholders.

AIG Highstar Capital, the private equity infrastructure fund sponsored by American International Group, has bought Jacksonville, Florida-based Advanced Disposal Services in a recapitalization valued at approximately $470 million (€373 million).

The solid-waste disposal company provides collection, transfer and disposal of non-hazardous waste for commercial, industrial, municipal and residential customers in the Southeastern US. The company also owns hauling and transfer stations, as well as disposal facilities.

AIG is making the investment out of its second fund, which closed on $800 million in July 2005. The vehicle is double the size of the firm’s first fund, which closed on $406 million in November 2000. Limited partners in the fund reportedly include British Columbia Investment Management, Everest Reinsurance, Kamil Holdings, Lexington Insurance, Mars Retirement Trust, Pioneer Group and Principal Life Insurance.

AIG Highstar, part of AIG Global Investment Group, typically commits between $50 million and $125 million of equity per deal. The firm currently has another waste disposal company in its portfolio, Pennsylvania-based North East Waste Services.

Advanced Disposal had previously raised venture capital funding from ABS Capital Partners, BB&T Capital Partners, New York Life Capital Partners, PNC Equity and Rock Creek Partners, among other firms.