McMinnville-based Western Oregon Waste announced Monday the sale of a 28 percent stake to San Francisco-based Recology Inc., an employee-owned company known for innovative recycling, composting and organics programs widely available in the Bay Area.

The agreement signals a mutual determination to help lead the industry in shifting its focus from waste management to resource recovery and optimization, according to Western Oregon Waste's majority partners, CEO Bob Emrick and CFO Joe Cook, who declined to disclose terms.

The joining of forces signals an exciting new paradigm for WOW's multi-county Northwestern Oregon service area, they said. The new partnership between WOW and Recology is aimed at achieving a zero waste level, they said.

WOW evolved out of City Sanitary, which was founded by the Kochs, a German immigrant family, in 1928.

Emrick became general manager in 1986 and Cook joined the company about 10 years later. Along the way, they acquired controlling ownership, which they are retaining.

Cook was reached in California, where he and other WOW personnel were in the process of touring Recology operations. He said the agreement capped about nine months of negotiations.

Emrick said the similar corporate cultures played a key role in driving the talks to a successful conclusion.

"What really stands out about Recology is how similar its culture is to ours at WOW," he said. "We share the same passion for our employees and customers, and are committed to creating and maintaining positive relationships with the communities we serve."

He said, "We are excited about the synergistic opportunities this partnership will create in Oregon."

Mike Sangiacomo, CEO at Recology, said the benefits promise to be mutual.

He said the company already owns waste collection and processing facilities in other parts of Oregon, including Ashland Sanitary Service, its associated transfer station, composting plants in Aumsville and North Plains, and three material recovery plants in the Portland metropolitan area. "In addition to increasing Recology's presence in Oregon, our partnership with WOW expands our business development capabilities in the region and complements our existing operations," he said.

Recology was founded in 1921. Sangiacomo joined the firm in 1984.

In addition to its home base in Northern California and growing presence in Oregon, it has established several footholds in other parts of the West, notably in Nevada.

It came under employee ownership, under provisions of an Employee Stock Ownership Plan, in 1986. It is the largest employee-owned company in the waste industry, and has been honored multiple times by the national ESOP Association.

However, Cook said WOW's workforce of 105 is not eligible to join the Recology ESOP and acquire an ownership interest.

He said that's only possible when a company comes under 100 percent ESOP ownership.