CHICAGO (March 17, 2015) – Baker Tilly Capital, LLC is pleased to announce that it served as the financial advisor to Long Island Compost in the February 27 sale of its consumer packaging division to Scotts Miracle-Gro Co. (Scotts), the world’s largest marketer of branded consumer lawn and garden products, based in Marysville, Ohio. The sale transfers ownership of the company’s consumer packaging facility located in Yaphank, NY and its consumer brands - Great Gardens and Hamptons Estates - to Scotts. In addition, Scotts has licensed the Long Island Compost brand.
As part of the transaction, Scotts will also lease 25 of Long Island Compost's 62 acres in Yaphank and install another packaging line. Scotts will also purchase bulk mulch and soil products from Long Island Compost’s adjacent remaining operating facilities in Yaphank under a long-term supplier agreement. The transaction will enable Scotts to source mulch and soil products locally rather than shipping bagged product to the Long Island market from its production facilities in Connecticut and Pennsylvania.
Based in Westbury, N.Y., Long Island Compost has been one of Long Island's leading providers of organic materials, services and products for more than 30 years. On an annual basis, the Company converts over 500,000 cubic yards of yard-waste into compost, mulch and other earth-friendly organic products which are sold both wholesale and under proprietary retail brands through outlets across the northeast.
Scotts in a statement said it was "committed to managing the environmental risks and reducing the environmental footprint of its growing media facilities and to work with our third-party manufacturers and distribution network to reduce their environmental impact."
Charles Vigliotti, Long Island Compost president and CEO, who owns the company with his brother, Arnold, said 38 workers will become Scotts' employees in Yaphank as part of the transaction. "We felt the timing was right to work with Scotts to complete a deal that benefited both businesses in a positive manner," Charles Vigliotti said. “This transaction will allow us to focus on the future growth of our company.”
Long Island Compost will continue to operate two yard waste transfer stations, conversion and wholesale operations – and expect the volume of yard waste they process to nearly double with the addition of Scotts’ branded products being produced in Yaphank, N.Y. Vigliotti noted that “Baker Tilly Capital helped us complete this strategic shift in our operations – enabling us to add a respected business partner and re-focus on growing the organic waste management and conversion side of our business. Throughout this transaction, they have been focused on benefiting our long term best interests and we look forward to working with them in the future”.
Additionally, via a newly created company called American Organic Energy, the Vigliottis plan to begin accepting food waste and converting it into clean energy, clean water and compost using anaerobic digestion technology. The digester plan is currently working through the permitting process and is expected to break ground during 2015, possibly as early as this upcoming summer, according to Vigliotti.
“We are proud to be associated with Long Island Compost and to help the Vigliottis put themselves in position to build on their long standing role of harvesting value from organic waste on Long Island”, said Michael Land, Director with Baker Tilly Capital, LLC. “Their operations are first class and we look forward to supporting their next steps in helping to achieve the organic diversion goals in the New York City region.”
About Baker Tilly Virchow Krause, LLP (bakertilly.com)
Baker Tilly Virchow Krause, LLP (Baker Tilly) is a nationally recognized, full-service accounting and advisory firm whose specialized professionals connect with clients and their businesses through refreshing candor and clear industry insight. With approximately 2,800 employees across the United States, Baker Tilly is ranked as one of the 15 largest accounting and advisory firms in the country. Headquartered in Chicago, Baker Tilly is an independent member of Baker Tilly International, a worldwide network of independent accounting and business advisory firms in 147 territories, with 33,600 professionals. The combined worldwide revenue of independent member firms is $3.4 billion.