Northstar Recycling Co., an “asset-light” waste and recycling service provider, has acquired Sonoco Sustainability Solutions (S3). Financial terms were not disclosed.
For 17 years, S3 has operated as a division of global packaging company Sonoco. The companies work with multi-site manufacturers and distributors in the food, consumer goods and industrial sectors to advance waste diversion and profitable reuse programs.
Northstar CEO Seth Goodman and President Noah Goodman said in a joint statement: “S3’s business model is complementary to Northstar’s, and this acquisition enhances our combined business’ ability to serve current and future customers and vendors at scale.”
Massachusetts-based Northstar offers a range of waste, recyclable and organic services and is a portfolio company. Ridgemont Equity Partners, a private equity firm. Ridgemont acquired his stake in the company in late 2021. Northstar acquired California-based Complete Recycling last year.
South Carolina-based Sonoco has been working to simplify its portfolio in recent months, describing it as a mutually beneficial deal.
“S3 and Northstar have shared the same mission for many years. “Sonoco continues to be committed to business success by working with the founders of Northstar and Ridgemont Equity Partners, and we are pleased to continue our strategic relationship with Northstar. I look forward to continuing.”
Sonoco Recycling, a division of a broader packaging company, continues to operate its own MRF assets, which grew from its acquisition of North Carolina-based American Recycling in 2021.
The deal is another example of a large packaging company selling its waste services and consulting business. WestRock sold its brokerage business to Rubicon in 2018.