Wind Point Partners has partnered with waste management and environmental services executive James Devlin to acquire Valicor Environmental Services, a provider of non-hazardous wastewater treatment services.
Valicor Environmental Services was a division of employee-owned and Dexter, MI-headquartered Valicor Inc. As part of the transaction, Wind Point acquired all of Valicor’s wastewater and oil processing assets as well as ownership of the Valicor brand. Valicor Inc. will continue to operate its remaining separation technologies business under a new name.
Valicor has a fleet of tanker trucks and a network of wastewater treatment facilities that collects, transports and processes a variety of wastewater products – oily water, leachate, soaps, line flush waste, and similar waste streams – that result from the manufacture of industrial and consumer goods. Customers include Honda, Harley-Davidson, Ford, General Electric, General Motors, Parker Hannafin, and many others. The acquired operations are headquartered halfway between Cincinnati and Dayton in Middletown, OH (www.valicor.com).
“Processing approximately 200 million gallons of wastewater and 20 million gallons of used fuel oil each year, Valicor provides essential environmental services to more than 3,000 customers across the Midwest,” said Konrad Salaber, a Managing Director with Wind Point. “These critical services not only allow customers to meet stringent federal, state, and local waste disposal regulations, but they also help clients reach important environmental goals, such as zero-landfill targets.”
Partnering on this transaction with Wind Point is industry veteran and long-time private equity executive James Devlin who will join Valicor as CEO. From March 2013 to September 2015, Mr. Devlin was the CEO of ReCommunity, one of the largest independent recycling companies in North America. ReCommunity, which operates 27 facilities in 14 states serving a range of municipal, residential and commercial customers, is a portfolio company of HarbourVest Partners, Pegasus Capital Advisors, and Harvey & Company. From November 2008 to February 2013, Mr. Devlin was CEO of Phoenix-based Thermo Fluids, a portfolio company of CIVC and a provider of oil collection and processing services to more than 20,000 industrial customers located in the Western US. CIVC sold Thermo Fluids to Heckmann Corporation in March 2012. Prior to Thermo Fluids, Mr. Devlin held senior management positions with Waste Management, New Penn Motor Freight, and Browning Ferris Industries.
“I feel fortunate to have the opportunity to partner with Valicor’s Chief Operating Officer Dave Brown, Chief Commercial Officer Bill Hinton, and the entire organization as the company enters its next phase of growth,” said Mr. Devlin. “We intend to build on Valicor’s excellent foundation by expanding services in our current facilities, launching new locations, and executing add-on acquisitions in a highly fragmented market.”
According to Wind Point, Valicor’s acquisition program will focus on operators of centralized waste treatment (CWT) facilities and other providers of waste management and environmental services, including materials recycling, used oil processing, product destruction, and landfill solidification.
Financing for the transaction was provided by Antares Capital, Carlyle Private Credit, and Northwestern Mutual Capital. Kirkland & Ellis represented Wind Point as legal counsel and KPMG provided transaction advisory services.
Wind Point invests from $20 million to $70 million of equity in companies with revenues from $100 million to $500 million and EBITDAs of at least $8 million. Industries of interest include business services, consumer products, healthcare and industrial products. The firm was founded in 1984 and is based in Chicago (www.wppartners.com).
© 2017 Private Equity Professional | June 7, 2017
Royal Adhesives & Sealants, a portfolio company of American Securities, has acquired the assets of the Ball Ground aircraft sealant repackaging business (BGAS) from Graco Supply.
BGAS provides point-of-use pre-mixed and frozen aircraft sealants and other packaging and application kits to aircraft manufacturers and their subcontractors. The BGAS business will be integrated into and operate under the name Royal Adhesives & Sealants and will continue to be located 50 miles north of Atlanta in Ball Ground, GA.
American Securities invests in businesses with $200 million to $2 billion of revenue and $50 million to $200 million of EBITDA. Sectors of interest include industrial manufacturing, specialty chemicals, aerospace and defense, energy, business services, healthcare, media, restaurants, and consumer products. The firm has more than $15 billion of capital under management and has offices in New York and Shanghai (
Lower middle market investor New Harbor Capital has closed its second private equity fund, New Harbor Capital Fund II, LP, with $265 million in capital commitments. The new fund was significantly oversubscribed and closed above the original target of $200 million and above the hard cap of $250 million. New Harbor closed its first fund in March 2015 with $146 million of capital.
Investors in the Fund II include domestic and international pension funds, endowments, funds of funds, asset managers, family offices and high net worth individuals. “We are deeply grateful for the near unanimous support of our Fund I investors and their continuing partnership with us in our second fund. We are also excited about the variety of high caliber new investors that are joining us in Fund II,” said Mr. Formolo.
“Both Fund I and Fund II included significant capital commitments from our team of Executive Advisors. This team of 11 founders and former CEOs of private equity backed companies are vital to our success by providing us critical market insights, assisting in sourcing unique investments and supporting our portfolio companies and management teams,” said Mr. Lhee.
ParkerGale Capital has hired Ben Falloon as a new Associate. Mr. Falloon will support investment sourcing and monitoring activities and will assist portfolio company management.
From September 2015 to April 2017, Mr. Falloon was an Associate at Parthenon-EY, where he provided growth strategy and commercial due diligence consulting services for corporate and private equity clients. He has an AB in Computer Science from Harvard University, where he was also a member – as a kicker – of the varsity football team.
