Star Atlantic

Star Atlantic is the platform company for Highstar's two waste management businesses, Interstate Waste Services and Advanced Disposal Services. Highstar invested in Star Atlantic in 2005 and currently owns the business. We have a 100% interest in Star Atlantic.

Highstar's Value-Add

Successful Execution of a Roll-up Strategy:

Star Atlantic comprises two waste management platforms in the northeast and southeast regions of the US, both of which are executing roll-up strategies and capitalizing on the fragmented nature of the industry. This roll-up strategy was a key driver of Highstar's investment thesis for Star Atlantic. We believed that we could close a significant number of tuck-in acquisitions in adjacent and existing geographies at attractive valuations, particularly when considering that incremental waste volumes could be directed to Star Atlantic's landfills, the highest margin part of the business, with minimal incremental cost.

Highstar II and Highstar III have executed on this aspect of the Star Atlantic investment thesis. Since 2006 acquiring the base businesses in 2005 and 2006, Star Atlantic has completed 30 acquisitions and development projects.

The Star Atlantic roll-up strategy has driven significant EBITDA growth, while at the same time maintaining what we believe to be conservative leverage levels. Moreover, we expect Star Atlantic's EBITDA margin to improve as incremental synergies are realized from these collective acquisitions.