Saw Mill Capital has completed the sale of Denali Water Solutions to an investment group led by Andy McNeill – Denali’s CEO – and McClarty Capital. Denali represents the last remaining division from Saw Mill’s investment in Terra Renewal, following the sale of Terra Renewal Services to Darling International (NYSE:DAR) in August 2013 and the sale of Denali’s Energy Fluids Division to a private investment group in December 2013.
Denali Water Solutions (formerly known as Terra Renewal) focuses on repurposing organic waste for beneficial reuse by providing environmental services – including collection, hauling, and disposition of municipal biosolids – to municipal customers on a nationwide basis. The company is based in Russellville, AR (www.denaliwater.com).
Saw Mill Capital first invested in Terra Renewal in April 2005. During the course of ownership the company’s revenue and EBITDA increased by 130% and 142%, respectively. “Our partnership with Andy McNeill and his senior management team allowed us to drive substantial organic growth and profitability at Terra, while completing nine acquisitions during our ownership,” said Scott Budoff, a Partner at Saw Mill. “At the same time, in partnership with Andy, we professionalized Terra’s people, processes and practices, creating a specialized business model that accelerated growth and profitability by deploying the Saw Mill Business System. We wish Andy and his team continued success as they move forward to deploy the successful growth strategy we jointly developed at Denali.”
Saw Mill Capital invests in manufacturing and service companies with enterprise values of $25 million to $200 million. Platform investments typically have at least $5 million of EBITDA and revenues of $40 million to $150 million. The firm is located in Briarcliff Manor, NY (www.sawmillcapital.com).
“Our partnership with Saw Mill was extremely successful,” said Andy McNeill, Denali’s CEO. “Saw Mill was a great partner and they were instrumental in our development into a leading environmental services provider. Although we are sorry to see our partnership with Saw Mill come to an end, we look forward to building upon the foundation we established together to drive Denali’s future growth and profitability.”
2014 PEPD • Private Equity’s Leading News Magazine • 11-12-14
