Synagro Technologies, Inc. and Denali Water Solutions, LLC and their affiliates announced that they have entered into an agreement wherein Synagro will acquire Denali鈥檚 municipal biosolids services business in California in exchange for Synagro鈥檚 industrial non-biosolids organics assets in Arkansas and Missouri. 鈥淭his transaction enables both Synagro and Denali to unlock tremendous value and grow our respective footprints in key markets,鈥� said Bob Preston, Chief Executive Officer and Chairman of the Board of Directors, Synagro. 鈥淲e remain committed to our industrial customers and believe this move will service them better while allowing us to focus on the sustainable growth of biosolids with municipal customers in the Ozarks.鈥�
鈥淲e are pleased to have worked with Synagro on a mutually accretive transaction,鈥� said Todd Mathes, Chief Executive Officer, Denali. 鈥淲hile we remain committed to our municipal services in other markets, exiting the California biosolids market will allow us to prioritize our other organics activities in the state, such as food waste and used cooking oil recycling. Moreover, we are excited to further expand our capabilities in Arkansas and Missouri, where Denali has a strong legacy of service and sustainability.鈥�
For customers and the environment, this represents an important increase in compost capacity, thereby sending more biosolids, food and green waste to beneficial use and promoting the avoidance of landfill emissions. 鈥淲e recognize the important role we play in the circular economy, and by continuing to execute upon our mergers and acquisitions strategy, we can further accelerate our contribution to divert biosolids from landfills,鈥� said Ben Gilreath, Vice President, Corporate Development and Mergers and Acquisitions, Synagro.