Kinderhook has acquired CVCC, an environmental clean-up contractor. CVCC owns and manages several related entities including Clean Venture, Cycle Chem, and Envirotech.
CVCC is a regional provider of hazardous and non-hazardous waste management services to commercial and government entities in the New England and Mid-Atlantic regions. Customers include utilities, refineries, power plants, chemical manufacturing plants, and academic and medical institutions. CVCC waste removal services including assessment, remediation, transportation, laboratory analysis, storage, and disposal for both planned and emergency responses.
“We were interested in CVCC because of the company’s loyal customer base, exceptional management, significant barriers to entry, and attractive geographic coverage,” said Cor Carruthers, Managing Director at Kinderhook. “Kinderhook has developed an expertise in the environmental services industry and we are excited about the opportunity to work with CVCC to support its aggressive organic and acquisition-led growth strategy.”
CVCC’s operating entities include: Clean Venture – a full service environmental contractor specializing in emergency response and site remediation services; Envirotech – an environmental consulting business; and Cycle Chem – an operator of two treatment facilities, which house the company’s analytical laboratory, storage, and disposal operations. CVCC is led by its president, Mike Persico. The company was founded in 1977 and is headquartered in Elizabeth, NJ (www.cleanventure.com).
“CVCC is widely recognized as a market leader in the industry as a provider of both hazardous and non-hazardous waste management services,” said Rob Michalik, a Managing Director at Kinderhook. “We look forward to helping CVCC continue to execute on its strategic plan and growth initiatives.”
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. Kinderhook pursues private equity investments in non-core divisions of public companies, management buyouts of entrepreneurial-owned businesses, troubled situations, and existing small capitalization companies lacking institutional support. The firm, founded in 2003, has $1.25 billion of committed capital and is based in New York (www.kinderhook.com).
“I am very enthusiastic about the future we will have with Kinderhook as a partner,” said Mr. Persico. “While working together with the significant environmental assets under the Kinderhook umbrella, we look forward to expanding our geographic footprint, increasing our service offering, and growing our customer base. Our partnership with Kinderhook will help us continue to achieve those goals.”
Financing for the transaction was provided by Comerica Bank. Kirkland & Ellis served as legal counsel to Kinderhook.
© 2015 PEPD • Private Equity’s Leading News Magazine • 11-20-15