Kinderhook Industries has acquired Capital Waste Services from Hawk Capital Partners. The buy of Capital Waste is Kinderhook’s 9th environmental services platform since its founding in 2003. Hawk Capital acquired Capital Waste in 2015.
Capital Waste is a regional provider of solid waste hauling services for residential, commercial and industrial waste generators. The Columbia, SC-headquartered company services sections of Richland and Lexington County under long-term municipal contracts as well as over 3,300 commercial and industrial waste customers. Capital Waste is led by CEO Matt Parker (www.capwasteservices.com).
“We look forward to the partnership with Kinderhook and leveraging the resources they bring to the table to accelerate the execution of our growth strategy,” said Mr. Parker. “The company is well-positioned to continue to grow by increasing its commercial and industrial penetration in existing markets and expanding all services into new geographies.”
“We are excited to welcome Capital Waste to the Kinderhook portfolio,” said Rob Michalik, a managing director at Kinderhook. “We look forward to accelerating the company’s growth through investments in people, equipment, and systems while maintaining the high-quality service levels Capital Waste is known for.”
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. The firm makes investments in non-core divisions of public companies, management buyouts of entrepreneurial-owned businesses, troubled situations, and existing small-capitalization companies lacking institutional support. Sectors of interest include healthcare services, environmental/business services, and automotive/light manufacturing. Kinderhook is headquartered in New York (www.kinderhook.com).
“Kinderhook is an ideal partner for the company,” said Jim Mirage, partner and co-founder of Hawk Capital. “They recognize the importance of high-quality service being the top priority for Capital Waste’s customers and will carry that priority forward as the company continues on its growth trajectory.”
Hawk Capital invests in Mid-Atlantic or Southeast-based companies that have revenues of $5 million to $40 million and EBITDA of $1 million to $8 million. Sectors of interest include distribution, food and beverage, industrial, branded consumer goods and services, direct marketing and web-based businesses, manufacturing, professional services, energy services, financial and leasing. The firm was co-founded by Mike Hagan and Jim Mirage and is headquartered in Bala Cynwyd, PA (www.hawkcapital.com).
Financing for this transaction was provided by Comerica Bank.
Kirkland & Ellis provided legal services to Kinderhook and Holland & Knight advised Hawk Capital.
© 2019 Private Equity Professional | August 21, 2019
J.F. Lehman & Company has acquired sister companies Lone Star Disposal LP, Delta Waste Services LP, and Tanner Road Facility LP (together Lone Star).
“Lone Star represents an excellent addition to our portfolio of companies in the environmental services sector,” said Glenn Shor, a partner with J.F. Lehman. “Lone Star’s industry-leading reputation, vertically integrated service offering and strategically located asset base reflect core characteristics we seek in our investment portfolio. We are eager to continue Lone Star’s history of excellence and look forward to supporting the continued growth of the business through organic development and complementary bolt-on acquisitions.”
J.F. Lehman is a middle-market private equity firm focused primarily on the aerospace, defense, maritime, government and environmental industries. The firm was founded in 1992 by Dr. John Lehman, who served six years as Secretary of the United States Navy. J.F. Lehman is headquartered in New York with an additional office in Washington, DC (
Compass Diversified Holdings has agreed to sell CEHI Acquisition Corporation, the parent company of Clean Earth, Inc., to Harsco Corporation (NYSE: HSC) for approximately $625 million in cash. Compass Diversified acquired Clean Earth in August 2014 from Littlejohn & Co.
“Compass has been an ideal partner, providing hands-on support, outstanding guidance and growth capital to enable Clean Earth to best take advantage of attractive opportunities,” said Mr. Dods. “I would like to thank Compass for their patient approach and commitment to invest in our business, driving growth and further strengthening Clean Earth’s brand, industry leadership and financial performance. The momentum that they helped create will provide us with a strong platform for the future.”
“We began our partnership with Clean Earth over four years ago and worked closely with its strong management team to achieve significant growth,” said Elias Sabo, CEO of Compass Diversified. “Specifically, our success capitalizing on organic growth opportunities and completing a number of compelling add-on acquisitions enabled Clean Earth to meaningfully expand its geographic footprint, processing capabilities and extensive service offerings, allowing the company to achieve strong revenue and cash flow growth.”
Compass Diversified (NYSE: CODI) is a private equity firm specializing in acquisitions, buyouts, and middle market investments. The firm invests between $75 million and $700 million in companies that have EBITDA of at least $10 million. Sectors of interest include niche industrial or branded consumer companies that are headquartered in North America. Compass went public in 2006 and is based in Westport, CT (
Harsco Corporation (NYSE: HSC), the buyer of Clean Earth, is a diversified business serving the steel and metals production, construction, railways and energy industries. The company is based near Harrisburg in Camp Hill, PA (
GenNx360 Capital Partners has acquired Miller Environmental Group, a provider of environmental services.
“We chose GenNx360 as our partner because we appreciated their specialization in the industrial sector and saw they would be a great match for MEG,” said Mr. Miller. “GenNx360 has an extremely talented team, many of whom have solid technical and operational backgrounds. These folks “get” operations-oriented companies and speak our language. We see numerous exciting growth avenues and look forward to accelerating those initiatives leveraging GenNx360’s expertise as MEG enters a new chapter of growth under their new ownership.”
“We are pleased to make this investment in MEG,” said Matt Guenther, a managing partner who led the transaction for GenNx360. “We recognized the company as a leader in its sector and believe they are well-positioned to capitalize on the increasing demand for differentiated environmental services. We look forward to working with MEG’s strong, experienced management team and to broaden its offerings through organic growth and strategic add-on acquisitions to expand its geographic reach.”
GenNx360 invests equity of $25 million to $75 million in companies that have revenues from $75 million to $250 million and EBITDA from $8 million to $25 million. Typical transaction sizes range from $50 million to $200 million. Target industries include industrial machinery and components, logistics, industrial and environmental services, food and agricultural products and services, infrastructure equipment and services, specialty chemicals, packaging, and aerospace and defense. GenNx360 was founded in 2006 and is headquartered in New York (
BC Partners and Ontario Teachers’ Pension Plan have agreed to acquire GFL Environmental from HPS Investment Partners, Macquarie Infrastructure Partners and Hawthorn Equity Partners. The transaction has an enterprise valuation of approximately $5.1 billion.
“BC Partners is excited to be partnering with Patrick and his high-quality management team,” said Paolo Notarnicola, a Senior Partner at BC Partners who led the transaction. “Our goal is to provide the capital and strategic support necessary for the continuation of their remarkable growth story.”
BC Partners has €17 billion of capital under management and invests in companies in a variety of sectors. The firm was founded in 1986 and has offices in London, Hamburg and New York. Since inception, BC Partners has completed 101 private equity investments in companies with a total enterprise value of €124 billion and is currently investing its tenth private equity fund (
“GFL is an exceptional Canadian success story led by a proven management team. We expect this partnership with GFL and our partners at BC Partners to create significant value for our stakeholders,” said Jane Rowe, Senior Managing Director, Private Capital at Ontario Teachers’ Pension Plan.
Ontario Teachers’ Pension Plan is one of Canada’s largest and most active pension investors with C$180 billion in net assets as of June 2017. Teachers’ portfolio of assets, 80% of which is managed in-house, has earned an annualized rate of return of 10.1% since the plan’s founding in 1990. Teachers’ has offices in Toronto, Hong Kong and London (
TAS Environmental, an environmental services provider and a portfolio company of TEAM Partners, has acquired Delmar Disposal.
TAS Environmental is a regional environmental services company that provides emergency response, remediation, industrial services, transportation, pipeline and terminal services to companies in Texas, Louisiana and Arkansas. TAS, led by CEO Ed Genovese, operates out of nine locations in Texas, Louisiana, Arkansas and Kansas and is headquartered in Fort Worth, TX (
“TAS is pleased to join forces with Delmar Disposal to deepen our commitment to the Dallas-Ft. Worth environmental services market. This transaction strengthens our industrial services offering and adds an in-demand, internal recycling asset for TAS,” said Mr. Genovese. “TAS now operates the largest 24/7 industrial vacuum fleet in the Dallas-Ft. Worth area with over 25 local units and is uniquely positioned to serve the demands of our growing customer base.”
“This has been an active year for TAS as we have closed two add-on acquisitions in the past six months and opened a new greenfield location in Midland, Texas,” said David Mann, Managing Partner of TEAM Partners. “Our appetite for future growth remains strong and we will continue to seek additional strategic acquisitions.”
TEAM Partners invests in profitable, family-owned and owner-operator businesses that have up to $100 million in revenue and have a minimum EBITDA of $1 million. Sectors of interest include consumer products, industrial and business services. The firm was founded by David Mann – previously a Partner at Brazos Private Equity Partners – and is headquartered in Dallas (
Valicor Environmental Services, a provider of non-hazardous wastewater treatment services and a portfolio company of Wind Point Partners, has acquired Ultra Environmental Services.
“We are excited to extend Valicor’s leading network into Kentucky and increase our total wastewater treatment capacity through the acquisition of Ultra Environmental,” said Bill Hinton, Valicor’s Chief Commercial Officer. “Ultra Environmental will play an important role in supporting our growth goals with wastewater generators as well as with providers of third party environmental solutions.”
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 (
