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Pegasus Capital, Intersection MissionPoint and Ares close acquisition of select assets of FCR

Pegasus Capital, an affiliate of Pegasus Capital Advisors, and Intersection, have created of Re Community Holdings, (ReCommunity), a new entity formed in partnership with MissionPoint Capital Partners, HarbourVest Partners LLC, and Ares Capital Corporation, and following the closing of an acquisition of select recycling assets of FCR, Inc.  

ReCommunity will serve as a strategic platform focused on recovering, recycling and repowering communities across America. ReCommunity will enable community partners to generate additional revenue, recover community owned resources, create new jobs, fund budget shortfalls, and reduce their carbon footprint.

Leveraging the assets and intellectual property purchased from Casella, ReCommunity intends to build a market-dominant company that dramatically reduces the volume of land-filled waste through conversion into useful products such as recycled commodities, low-carbon energy, engineered feedstock, bio-fuels and other value-added recycled products.

ReCommunity aims to lead a "recovery revolution" by repositioning waste as a strategic community resource instead of a growing liability. As part of the acquisition, ReCommunity acquired intellectual property including: patents related to methods of sorting for material characterisation in recycling streams; material Recovery Facility (MRF) automation; and the production of engineered fuel feedstock from a waste stream. The transaction includes an ongoing technology use license to Casella, which will allow Casella to utilise this intellectual property in its own business subject to certain restrictions. The acquired technology will enable ReCommunity to maximise the conversion of waste streams that would otherwise go into landfills into marketable products.  

The new platform company will be led by James Bohlig, former SVP and Director of Casella Waste Systems, and Paula Calabrese, Director of Strategic Planning, who drove the vision, intellectual property and platform approach, as well as Sean Duffy, President of FCR, who managed all of Casella’s FCR Recycling Operations.

"The core of our strategy is to continue and expand our record of long-term community partnership and work together towards a more fiscally and environmentally sustainable future" says James Bohlig, who will serve as CEO of ReCommunity.  "We believe that our deep community relationships combined with unique intellectual property, a proven and passionate management team and the necessary capital for growth are a winning combination in the marketplace."  

Under the new brand of ReCommunity, former FCR senior management will continue to run ReCommunity operations, post-acquisition. This leadership team includes market-leading executives with the expertise, relationships, and proven track record to provide customised solutions for communities nationally. FCR has expertise in designing, building and operating material recovery centres to service the recycling needs of municipal and independent hauling partners across the Eastern United States. FCR operates 18 facilities in nine states, recovering and returning to market nearly one million tons of recovered commodities each year.  The acquired FCR facilities have a strong track record of developing sustainable, long-term public-private partnerships with the communities they serve.

"By forging private-public partnerships with the communities we serve, we will help lead the new economy with new jobs and growth," says Sean Duffy, the President and Chief Operating Officer of ReCommunity. "Community behaviour has local and global implications, and we see the future of America’s communities as clean, independent, resilient and maximising the use of their own resources. Our team deeply believes in sustainability, community partnerships and job creation, and we’re excited to see this vision come to fruition."

Craig Cogut, Managing Partner and founder of Pegasus Capital Advisors, LP, who will serve as the new company’s Chairman, says: "ReCommunity is the latest demonstration of our commitment to developing successful companies and technologies that address the real issues of scarce resources facing our economy. With an exceptional leadership team, solid business fundamentals, and groundbreaking intellectual property, this new company is well positioned to solve problems all of our communities face. We look forward to working together with them and all of our talented partners at Intersection, MissionPoint, HarbourVest and Ares to significantly transform not only how America recovers waste, but how our country views its potential."

The group of investors, led by Pegasus Capital Advisors and MissionPoint Capital Partners, will actively support the company and provide access to significant additional capital to facilitate the company’s growth strategy.  In addition to Pegasus and MissionPoint, other partners, including HarbourVest Partners LLC and Ares Capital Corporation, have committed capital to support the company.

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