Seale & Associates advises Avangard Innovative on the sale of a controlling interest of its U.S. business to WM

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Seale & Associates, Inc. (“Seale”) announced that it acted as an exclusive financial advisor to the shareholders of Avangard Innovative LP (“Avangard”) on the sale of a controlling interest of its U.S. business to WM (NYSE: WM), a leading provider of waste management environmental services to residential, commercial, industrial, and municipal customers in North America. The transaction is expected to close in late 2022, subject to the satisfaction of customary closing conditions, including regulatory approvals.

Avangard Innovative is one of the largest premium-grade post-consumer resin (PCR) producers in the Americas. Provides technology-driven circular economy solutions that monetizes recyclables and refurbishes them for reuse, driving efficiency and decarbonization. Avangard partners with many customers to help them deliver their sustainability objectives, ESG goals, and lower their carbon footprint.

The transaction will be in form of a newly-created company to operate as Natura PCR – an independent company expected to scale and grow recycling capacity to produce an estimated 400 million pounds per year of post-consumer resin in five years. Through Natura PCR, WM expects to deliver new recycling capabilities for its customers and provide circular solutions for films and clear plastic wrap used commercially, such as plastic stretch wrap for pallets, furniture film, grocery bags and potentially shrink wrap around food and beverage containers. Natura PCR will be primarily owned and controlled by WM. Avangard and affiliated entities will hold a collective minority equity position in Natura PCR.

Leading materials science company, Dow (NYSE: DOW), has been working with WM to help increase the recycling rate of plastics and create sustainable solutions in packaging, infrastructure, and consumer applications. Dow has also been working with Avangard Innovative since early 2020, purchasing the company’s PCR pellets to produce REVOLOOP™, Dow’s product line with PCR content.

“WM’s controlling interest in Natura PCR positions us to grow and scale rapidly in the emerging PCR space,” said Jim Fish, president and CEO, WM. “WM’s core material supply capabilities, with the head start and knowledge provided by Avangard’s U.S. business, will help Natura PCR quickly deliver circular options to WM’s customers as an important component of our continued growth strategy in recycling. Today, there is so much untapped potential to reuse film – which impacts many of our commercial customers. We can help our customers close the loop and bring more recycled materials to the store shelf.”

“Seale & Associates has been our trusted advisor and skillfully guided us through the process to ensure a mutually beneficial partnership transaction with WM. The team’s professionalism, integrity, and dedication are second to none” stated Rick Perez, CEO of Avangard Innovative.

“We are so very pleased to advise Rick Perez and the entire Avangard team on this transformative strategic partnership that will allow the company to significantly invest and expand their on-going efforts to help customers realize a sustainable circular economy as well as accomplish their ESG objectives,” said Brett Carmel, Co-founder and Senior Managing Director at Seale & Associates.

“Avangard has built an unrivaled platform for the production of post-consumer resin with tremendous success in the U.S. and the Americas. We congratulate the Avangard team and we wish them continued success and growth with the WM partnership”, stated Alejandro Montemayor, Vice President at Seale & Associates.

Seale & Associates, Inc. is the exclusive financial advisor, and Vinson & Elkins LLP is the legal advisor to Avangard Innovative on this transaction. Goldman Sachs & Co LLC is the exclusive financial advisor, and Locke Lord LLP is the legal advisor to WM on this transaction.

Avangard Innovative LP. Avangard Innovative is a leader in technology-driven circular economy solutions. With 30 years of experience, Avangard Innovative offers full-service waste management and recycling optimization solutions at all levels of the process. AI's proprietary technology, program management & optimization, and post-consumer resin manufacturing are designed to help clients measure, manage, and monetize their sustainability programs. Avangard Innovative’s mission is to preserve and protect the environment by achieving zero-waste-to-landfill. For more information, please visit www.avaicg.com.

Waste Management, Inc. WM is North America’s largest comprehensive waste management environmental solutions provider. Previously known as Waste Management and based in Houston, Texas, WM is driven by commitments to put people first and achieve success with integrity. The company, through its subsidiaries, provides collection, recycling, and disposal services to millions of residential, commercial, industrial, and municipal customers throughout the U.S. and Canada. With innovative infrastructure and capabilities in recycling, organics and renewable energy, WM provides environmental solutions to and collaborates with its customers in helping them achieve their sustainability goals. WM has the largest disposal network and collection fleet in North America, is one of the largest recyclers of post-consumer materials and is the leader in beneficial reuse of landfill gas, with a growing network of renewable natural gas plants and the most gas-to-electricity plants in North America. WM’s fleet includes nearly 11,000 natural gas trucks – the largest heavy-duty natural gas truck fleet of its kind in North America – where more than half are fueled by renewable natural gas. For more information, please visit www.wm.com

Seale & Associates, Inc. Founded in 1999, Seale & Associates is a global investment banking firm with extensive experience in mergers and acquisitions, corporate finance advisory, and enterprise level strategy consulting. Our professionals are trusted advisors maintaining a high level of quality and integrity while presenting innovative ideas and solutions to address our clients’ most complex dealings. For more information, please visit www.sealeassociates.com

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