The Tri Con Works management team, including Gary Smith, Bryan Robbins and Jay Maza, are investors in the transaction and will continue to manage the day-to-day operations of the company in partnership with Aperion.
“Tri Con will be Aperion’s second investment in the environmental services industry, and we are excited to partner with Tri Con’s outstanding management team”, said David Brady, Managing Director of Aperion Management. “The company has historically succeeded in growing its business while maintaining its best in class service and excellent safety record. Tri Con is well positioned for future growth opportunities, and we look forward to building this business while sustaining its high level of service.”
Tri Con Works is an environmental services provider specializing in the construction and maintenance of landfill gas monitoring, collection and recovery systems, as well as leachate systems. Landfill gas is a by-product of the disposal of municipal solid waste in landfills and can lead to the release of greenhouse gases into the atmosphere. The monitoring, collection and recovery of landfill gas is a vital part of waste management from an environmental and safety perspective, and the related conversion of landfill gas into energy is a significant contributor of renewable fuel.
In the last five years, Tri Con has drilled over 150,000 feet and installed 2,500 landfill gas wells. In addition to landfill gas systems, Tri Con has installed over 100 leachate collection and storage systems, including turnkey installations of risers, pipeline systems, pumps and essential electrical lines. Tri Con was previously owned by its management team in partnership with Ex-Blue, LP, an investment firm founded by former executives of Browning-Ferris Industries. Tri Con Works was founded in 1998 and is headquartered in Houston (www.triconworks.com).
Graycliff Partners made a mezzanine investment in Tri Con Works to support the acquisition. This investment is the fourth investment made by Graycliff Mezzanine II LP, a fund recently closed with over $250 million in commitments. Comerica Bank provided senior financing for the transaction.
“We are pleased to invest in Tri Con and support the buyout of the company by Aperion,” said Duke Punhong, a Principal of Graycliff Partners. “Tri Con is an exceptional company with strong leadership and a long history of growth. Together with Aperion’s significant expertise of investing in the waste industry, we see tremendous potential for expansion and growth. We look forward to leveraging our flexible approach and deep investment experience to partner with management and Aperion to see Tri Con through the next stage of growth.”
Graycliff Partners invests from $5 million to $25 million of equity and mezzanine capital in companies with revenues of at least $10 million and EBITDA margins of 10% or higher. Sectors of interest include manufacturing, services and distribution. Both control and minority investments are considered. The firm was formed in December 2011 by the former investment team of HSBC Capital. Graycliff Partners is headquartered in New York with an additional office in São Paulo (www.graycliffpartners.com).
Aperion Management invests in small to mid-size businesses valued between $15 million and $150 million. Operating independently since 2006, the principals of Aperion Management and its affiliates have been the lead investor on seven transactions representing approximately $160 million in enterprise value and $250 million in revenue. Current platform investments include RoadSafe Traffic Systems, a provider of traffic safety equipment and services based in Chicago (www.roadsafetraffic.com); and Stella Environmental Services, a municipal solid waste transfer station management and transportation business based in Houston (www.stellaenv.com). Aperion Management is based in New York.
© 2014 PEPD • Private Equity’s Leading News Magazine • 4-4-14