Kinderhook Adds to Circon
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Kinderhook Adds to Circon

Circon Environmental, a portfolio company of Kinderhook Industries, has acquired Water Integrated Treatment Systems (WITS).

WITS is a provider of non-hazardous liquid waste treatment, transportation, and testing services to companies operating in the automotive, chemical, food and beverage, oil and gas, and utility sectors. The company was founded in 2015 by Rico Martinez and operates two facilities near Chicago in Dolton, Illinois, and near Milwaukee in Kenosha, Wisconsin.

The buy of WITS is Circon’s fourth add-on acquisition since being formed by Kinderhook in July 2019 through the merger of two of its portfolio companies, Intergulf Corporation (acquired by Kinderhook in December 2017) and STC Industrial (acquired by Kinderhook in July 2015).

South Carolina-based STC is a provider of waste removal, transportation, and disposal services to domestic refinery companies and corporate waste generators. Texas-based Intergulf, procures, transports, blends, treats and processes petroleum and petrochemical waste streams to repurpose those materials as alternative fuel products.

Circon, led by CEO Frank Iezzi, is headquartered near Houston in La Porte, Texas and operates ten facilities – including six centralized waste treatment (CWT) facilities – across Texas, South Carolina, and Indiana.

“We are excited to add the WITS facilities and team to our expanding network of CWTs across the existing network of Circon locations,” said Mr. Iezzi. “Circon continues to be committed to expanding in both new and existing geographies to better serve its customers and deliver a greater level of services with a focus on delivering sustainable services with quantifiable metrics. Our new Dolton and Kenosha locations will play a key role as we increase our services in the Great Lakes region.”

“The acquisition of WITS will enable Circon to win market share and expand its CWT presence, which has been a strategic focus for the company,” said Rob Michalik, a managing director at Kinderhook. “We look forward to welcoming the WITS team and its long-standing reputation of quality service to Circon and look forward to using this transaction as a catalyst for future growth.”

Twin Brook Capital Partners was the administrative agent on debt financing to support Circon’s acquisition of WITS. Chicago-based Twin Brook focuses on loans to private equity-owned companies with EBITDA between $3 million and $50 million, with an emphasis on companies with $25 million of EBITDA and below. The firm targets senior financing opportunities up to $200 million, with hold sizes across the platform ranging from $25 million up to $150 million. Twin Brook’s products include opportunistic investments in second lien, mezzanine, and equity co-investments.

New York City-based Kinderhook has over $3.3 billion of committed capital and has closed more than 250 investments and follow-on acquisitions since its founding in 1983. Kinderhook makes control investments in companies with transaction values of $25 million to $150 million in which the firm can achieve financial, operational and growth improvements. Sectors of interest include healthcare services; environmental and business services; and automotive and light manufacturing.

© 2021 Private Equity Professional | May 4, 2021

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