Allied Waste picks up competitor

Allied Waste Services of Springfield acquired Karmann Refuse Service Inc. on March 16, continuing a consolidation trend in the trash-service industry.

Springfield-based Karmann Refuse Service’s 11 trucks are now folded into Allied Waste Services’ 100-truck fleet that covers a 12-county service area in southwest Missouri, said Kurt Bodendorfer, general manager of Allied Waste, a branch of Phoenix, Ariz.-based Republic Services Inc. with about 130 local employees. The deal also positions Karmann Refuse co-owner Nick Karmann in a management role at Allied Waste, Bodendorfer said.

In the last decade, the Springfield waste disposal playing field has decreased to a handful of companies from roughly a dozen. People who work in the industry note the shifting landscape reflects national trends that stretch beyond trash removal.

“I think it’s similar to other industries, where you’re getting bigger, megacompanies but still have some smaller companies,” said Barbara Lucks, materials recovery and education coordinator for the Springfield Public Works Department, which operates the city-owned landfill. “You’ve seen it in banking and retail – it’s kind of the trend in business for companies to consolidate through merger or buyout.”

The landfill receives roughly 600 tons of waste a day, with each of the area’s two largest trash haulers – Allied and WCA Waste Corp. of Missouri, a division of Houston, Texas-based WCA Waste Corp. – contracted to dump 175 tons per day, Lucks said. The smaller trash haulers and other sources, such as individual residents, make up the difference, she said.

Among the smaller, locally owned companies left after the merger between Allied and Karmann are Automated Waste Services LLC, Ozark Refuse Inc. and Strafford-based Hometown Disposal Inc.

Allied’s Bodendorfer said Karmann co-owners Nick and Lisa Karmann initiated the merger, adding that they decided to sell the company for personal reasons. A letter to Karmann Refuse customers announcing the merger noted, “Our current situation is such that we will be moving on to other business ventures.”

Bodendorfer declined to disclose how much volume – and how many customers – his company has picked up with the purchase. About eight of Karmann Refuse’s employees, including Nick Karmann, joined the staff, he said. Karmann did not return phone messages requesting an interview.

Allied’s purchase of Karmann Refuse for an undisclosed price was its first local acquisition in 10 years, Bodendorfer said. It wasn’t one the company took lightly, either, he said.

“We don’t actively pursue acquisitions. Our company believes in growing by focusing on our existing customer base,” said David Kamenesky, who works as a controller at Allied and spent nearly eight months putting the deal together.

Before agreeing to the purchase, Allied looked at Karmann’s customer service record and customer base as well as its safety record, finding the smaller, 12-year-old company’s business practices paralleled its own, Bodendorfer said.

Allied examined employee records, service history and the shape the equipment was in, he said.

“Throughout the years, we’d never seen one of their trucks broken down on the side of the road,” Kamenesky said. “To us, if you see another company’s truck on the side of the road waiting to be towed, you wonder if they’re really concerned about safety.”

The merger shouldn’t change much for Karmann’s customers, Bodendorfer said. Monthly rates won’t change, though customers will move from a two-month billing cycle to three months. In approximately two months, he said, pick up days may shift for both Karmann and Allied customers as the company consolidates its routes.

Terry Stone, owner of Automated Waste Services LLC, said the merger may actually create opportunity for his company, since some of Karmann’s customers may opt to choose a locally owned service over a national corporation.

“We still answer the phone when you call,” Stone said. “If we’re open for business, you will get a live voice. That’s not something companies do anymore, but for us, it’s part of our values.”[[In-content Ad]]