J.F. Lehman & Company has acquired Waste Control Specialists from publicly-traded Valhi. The acquisition of Waste Control Specialists is J.F. Lehman’s fourth platform investment in the environmental and technical services sector.
Waste Control Specialists (WCS) owns and operates a waste disposal, storage, and treatment facility in Andrews County, TX (located 350 miles west of Dallas) that is used for highly specialized and regulated waste streams including low-level radioactive waste, hazardous waste and mixed hazardous and radioactive waste. WCS is headquartered in Dallas (www.wcstexas.com).
WCS is the only site in the United States licensed to process and dispose of Class A, B, and C low-level nuclear waste from government and commercial generators located in all 50 states. Customers include the Department of Energy, the Environmental Protection Agency, and blue-chip utility and healthcare enterprises.
J.F. Lehman already had a relationship with WCS through its portfolio company NorthStar Group, a provider of environmental and technical services that support electric utilities in decommissioning nuclear power generation sites. NorthStar Group was acquired by J.F. Lehman in June 2017 and is headquartered in New York (www.northstar.com).
“WCS maintains an industry-leading reputation and provides an essential solution for the safe disposal of specialized waste streams,” said Alex Harman, a Partner at J.F. Lehman. “We are excited to support the long-term success of the business through continued engagement and partnership with industry stakeholders, including strengthening the partnership with NorthStar to deliver a best-in-class nuclear power plant decommissioning solution.”
“Through its unique technical competencies and industry leadership, WCS exemplifies many of the values and attributes J.F. Lehman emphasizes in its investment strategy,” said Glenn Shor, Managing Director at J.F. Lehman. “Our partnership with WCS will ensure the business has the resources required to support its long-term growth strategy across the government and commercial marketplace.”
Valhi (NYSE: VHI), the seller of Waste Control Specialist, is a large diversified company with interests in chemicals, component products, waste management, and real estate businesses worldwide. The company operates through its subsidiaries, including NL Industries, Kronos Worldwide, CompX International and Waste Control Specialists (now sold). The company, with annual revenues of approximately $1.6 billion, was founded in 1971 and is based in Dallas (www.valhi.net).
J.F. Lehman & Company is a middle-market private equity firm focused primarily on the maritime, defense, and aerospace sectors. The firm was founded in 1992 by Dr. John Lehman, who served six years as Secretary of the United States Navy. To date, J.F. Lehman has acquired 61 operating entities within 25 platform investments with an aggregate transaction value of approximately $3.1 billion. The firm is headquartered in New York with an additional office in Washington, DC (www.jflpartners.com).
Evercore (www.evercore.com) was the financial advisor to J.F. Lehman and also acted as placement agent for the debt financing for the transaction which was provided by The Carlyle Group’s Credit Opportunities Fund.
© 2018 Private Equity Professional | January 29, 2018