Blue Sage Capital has completed the sale of one of its portfolio companies, R360 Environmental Solutions, a provider of non-hazardous oilfield waste treatment, to Waste Connections for approximately $1.3 billion.
R360 is a provider of non-hazardous oilfield waste treatment, recovery and disposal services in several of the most active natural resource producing areas in the United States, including the Permian, Bakken, and Eagle Ford Basins. R360 operates 26 facilities across Louisiana, New Mexico, North Dakota, Oklahoma, Texas, and Wyoming and is based in Houston (www.r360environmentalsolutions.com).
Blue Sage was advised by Goldman Sachs, Bank of America Merrill Lynch, Credit Suisse, Citigroup, and Wells Fargo during the sale process.
Blue Sage has had a longstanding commitment to the oilfield waste treatment sector. The firm previously owned Controlled Recovery (CRI), which was acquired by R360 in 2010. Peter Huff, Co-Founder and Managing Member of Blue Sage, served on the R360 Board of Directors and helped steer R360, utilizing his experience from CRI. “We have been active owners in this market since 2006. Our businesses have steadily grown during this time. This transaction will deliver exceptional returns to our investors,” said Mr. Huff.
Blue Sage Capital specializes in growth, recapitalization and buyout financings of smaller middle-market companies based in Texas and the Southwest. Most of Blue Sage’s investments are in established, profitable companies with $5 million to $100 million of revenue and $2 million to $8 million of cash flow at the time of investment. Blue Sage invests in a variety of industries, with each initial investment in a company ranging from $10 million to $15 million. The firm was founded by Peter Huff and Jim McBride and is based in Austin, TX (www.bluesage.com).
This transaction marks Blue Sage’s second exit in the last three months. Blue Sage also sold Ashbrook-Simon Hartley, a wastewater equipment company, in August 2012.
Waste Connections (NYSE: WCN) is an integrated solid waste services company that provides solid waste collection, transfer, disposal and recycling services in mostly exclusive and secondary markets. The company serves more than two million residential, commercial and industrial customers from a network of operations in 30 states. Waste Connections also provides intermodal services for the movement of cargo and solid waste containers in the Pacific Northwest. The company was founded in September 1997 and is headquartered in The Woodlands, TX (www.wasteconnections.com).
© 2012 PEPD • Private Equity’s Leading News Magazine • 10-26-12
