Circular Services Acquires Midwest Fiber Recycling, Expanding Services for Communities in the U.S.

December 18, 2023, New York, NY – Circular Services, a leading developer and operator of circular economy infrastructure in the U.S., announced its acquisition of Midwest Fiber Recycling, growing the portfolio of materials recovery facilities under Circular Services’ recycling arm, Balcones Recycling. This marks Circular Services’ expansion into the Midwest of the U.S., to support existing recycling infrastructure and services in the region and increase the recovery of valuable materials into domestic supply chains.

Midwest Fiber began in 1990 when founders Ron and Linda Shumaker purchased the Decatur Recycle Paper Company. Since then, with sons Mike and Todd Shumaker, they have grown the company into one of the largest recycling operations in the Midwest, with facilities in Decatur, Normal, Urbana and Peroria, IL and Terre Haute, IN. Today, Midwest Fiber services residential single-stream and commercial properties via a dedicated collection fleet. In addition, Midwest Fiber provides document destruction and recycling services and has a recycled material brokerage arm that helps generators maximize value by marketing directly to end-users. Following the acquisition, Midwest Fiber’s management team will continue to run the company, partnering with the Circular Services team and leveraging its broader platform to continue its growth trajectory.

“Todd and I waited to find the right partner,” said Mike Shumaker, CEO of Midwest Fiber Recycling. “The singular focus of Circular Services and Balcones Recycling on advancing robust circular materials management, as well as their longstanding experience operating recycling infrastructure, made them a great fit. We look forward to working alongside their team, and leading our family business into the next chapter.”

The acquisition is taking place at a critical time as more cities across the U.S. prioritize zero-waste goals, due to the combined urgency of climate risks and increasing landfill costs. Similarly, many leading corporations in the U.S. are committing to keep more materials in circulation and incorporate more recycled content in their packaging, as part of their larger sustainability and net zero goals. According to the Circularity Gap Reporting Initiative, 70% of all global greenhouse gas (GHG) emissions are related to material handling and use, making circular economy infrastructure a critical part of the solution to the climate crisis. Expanding access to recycling and reuse services will enable cities and businesses to avoid the costs and emissions of landfilling products and packaging and achieve their sustainability goals.

Circular Services operates several companies to offer holistic circular materials management services, helping municipalities and businesses close the loop on valuable materials, including paper, metal, glass, plastics, organics, textiles and electronics. Among these companies is Balcones Recycling, Circular Services’ recycling company. Prior to this acquisiton, Balcones Recycling was already one of the largest independent recycling companies in the country, handling more than 1 million tons of recyclables each year through its operations in New York, New Jersey, Florida, Texas, Arizona and Arkansas. Following this acquisition, Balcones Recycling will operate 18 materials recovery facilities across the U.S., including five from Midwest Fiber.

“The Shumakers have built and led a great company with an excellent reputation as they served their surrounding communities for over 30 years,” said Tom Outerbridge, CEO of Balcones Recycling. “We are proud to join forces with Mike, Todd and their management team and leverage our collective expertise and growing portfolio of facilities to offer custom, effective recycling solutions to more municipalities, counties and small-to-large businesses.”

“We are excited to expand Circular Services and have Midwest Fiber Recycling be a part of our larger portfolio of infrastructure and services keeping materials in circulation—from paper, to plastic, organics, electronics, textiles and more,” said Amy Wagner, CFO & EVP of Business Development & Operations, Circular Services. “We look forward to expanding our services to the Midwest region of the U.S., and into commercial and brokerage services, providing more communities and companies with the infrastructure needed to reduce dependence on extraction and landfill, and advance a circular economy.”

About Balcones Recycling
Balcones Recycling is a Circular Services company. As a pure-play recycling company, Balcones is on a mission to recover all recyclables from the waste stream. As such, we design custom recycling programs focused on keeping resources away from landfills. We are known for building state-of-the-art facilities and fostering great partnerships with small-to-large businesses, counties and municipalities. We don’t stop at processing – we are active in key industry initiatives to increase the circularity of our materials and economy. We prioritize education and outreach initiatives to improve recycling participation. We love what we do and look forward to partnering with you to build a circular economy, one bale at a time. Learn more about Balcones Recycling at https://www.balconesrecycling.com/about/

About Circular Services
Circular Services is the operating group of Closed Loop Partners, a leading investment firm focused on advancing the circular economy. Circular Services provides holistic, circular materials management to close the loop on valuable materials for municipalities and businesses throughout the United States. Employing innovative technology within reuse, recycling, remanufacturing and re-commerce solutions, Circular Services improves regional economic and environmental outcomes by building resilient systems to keep food & organics, textiles, electronics, packaging and more, in circulation and out of landfill or the natural environment. For more information, please visit https://www.closedlooppartners.com/circular-services/