environmental services

Kinderhook Invests in Capital Waste Services

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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 Buys Lone Star

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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 is a vertically integrated provider of construction and demolition (C&D) and municipal solid waste (MSW) disposal and other environmental services.

The company’s customer base includes regional and nationwide C&D and MSW haulers and C&D contractors serving the greater Houston metropolitan area. Lone Star is headquartered in Houston (www.lonestar-disposal.com).

“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 (www.jflpartners.com).

Debt financing for this transaction was provided by Monroe Capital and Stifel was the financial advisor to Lone Star.

© 2019 Private Equity Professional | August 15, 2019

Compass Diversified Exits Clean Earth

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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.

Clean Earth is a provider of environmental services for a variety of contaminated materials including soils, dredged materials, and hazardous waste and drill cuttings. The company analyzes, treats, documents and recycles waste streams generated in a range of end-markets including power, construction, oil & gas, infrastructure, industrial and dredging.

Clean Earth’s treatment processes include thermal desorption, dredged material stabilization, bioremediation, physical treatment and screening, and chemical fixation. Before the company accepts contaminated materials from its customers, it identifies a third party “beneficial reuse” site such as commercial redevelopment or landfill capping, where the materials are sent after they are treated. Clean Earth, led by CEO Chris Dods, is headquartered in Hatboro, PA and operates 14 facilities in the Eastern US (www.cleanearthinc.com).

In 2018, Clean Earth had revenues of $267 million and Adjusted EBITDA of $42 million. In 2019, Clean Earth is projected to have $300 million of revenue and $65 million of Adjusted EBITDA. Based on these results, the exit multiple for this transaction is 14.9x 2018 Adjusted EBITDA and 9.6x 2019 projected Adjusted EBITDA.

“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.”

During Compass Diversified’s term of ownership, Clean Earth completed seven add-on acquisitions: Charlotte, NC-based Disposal and Recycling Technologies, a provider of wastewater treatment services with facilities in Detroit and Charlotte (September 2018);  ESMI Companies, located in Fort Edward, NY, and Loudon, NH, a provider of soil recycling and hazardous waste services (June 2018); Doraville, GA-based MKC Enterprises, a provider of hazardous and non-hazardous waste management services (March 2018); Allentown, PA-based AERC Recycling Solutions, an electronic and universal waste recycling company (March 2017); Glencoe, AL-based EWS Alabama, a provider of hazardous and non-hazardous waste management services (July 2016); Plainville, CT-based Phoenix Soil, a provider of thermal treatment services used to process non-hazardous petroleum-contaminated soils (May 2016); and Sewickley, PA-based American Environmental Services, a provider of hazardous and non-hazardous waste management services (April 2015).

“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 (www.compassequity.com).

Prior to its public offering in 2006, the Compass team, which was formed in 1998, invested solely on behalf of The Kattegat Trust.  A principal beneficiary of The Kattegat Trust is the TK Foundation, a philanthropic foundation of the late J. Torben Karlshoej, the founder of Teekay Corporation (NYSE: TK), an energy transportation (marine), storage and production company.  The Kattegat Trust is Compass’s largest shareholder.

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 (www.harsco.com).

Moelis & Company (www.moelis.com) and Houlihan Lokey (www.HL.com) were the financial advisors to Compass on this transaction which is expected to close within the next few months.

© 2019 Private Equity Professional | May 10, 2019

GenNx360 Acquires Miller Environmental

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GenNx360 Capital Partners has acquired Miller Environmental Group, a provider of environmental services.

Miller Environmental Group (MEG) provides industrial cleaning, environmental emergency response, environmental remediation, health and safety training, and marine support services to the utility, transportation and petrochemical industries.

MEG was founded in 1971 and is headquartered on Long Island in Calverton, NY. The company, led by its owner and CEO Mark Miller, has eight additional facilities serving the Mid-Atlantic and Northeastern US (www.millerenv.com).

“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.”

Mr. Miller will continue as a member of MEG’s board of directors and will be exiting from the day-to-day operations of the company. Vice President of Operations Jerry Coogan has been appointed the company’s new chief executive officer.

“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 (www.gennx360.com).

© 2019 Private Equity Professional | March 21, 2019

GFL Environmental Changes Sponsors

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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.

GFL is a provider of environmental management services for both solid and liquid waste. The company’s services include collection, hauling, sorting, transfer and disposal of non-hazardous solid waste (including recyclable materials and organics); identification, collection, transport, processing, recycling and disposal of a range of hazardous and non-hazardous liquid wastes (plus sale of recycled liquid wastes and other liquid products); and soil remediation services, as well as site excavation, demolition, soil retention, foundations installation and specialty infrastructure project services.

The company has a network of more than 140 facilities across Canada and in Michigan and serves more than 2.5 million households under municipal contracts and more than 60,000 industrial, commercial and institutional customers. GFL has more than 5,000 employees and is headquartered in Toronto (www.gflenv.com).

Patrick Dovigi, the founder and CEO of GFL, will continue to lead the company and will maintain a significant ownership interest. “Today is a very important milestone for the next phase of growth of GFL.  From our humble beginnings in 2007 with eight employees to having now grown to a workforce of over 5,000 in both Canada and the United States, the last 10 years have been nothing short of remarkable,” said Mr. Dovigi. “The signing of this transaction reflects the hard work and dedication of each and every one of our employees whose tireless efforts make GFL what it is today. Without them, our continued success would not be possible.”

“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 (www.bcpartners.com).

“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 (www.otpp.com).

Citigroup Global Markets has provided committed financing for the transaction which is expected to close by June 30, 2018.

TEAM Adds to TAS Environmental

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TAS Environmental, an environmental services provider and a portfolio company of TEAM Partners, has acquired Delmar Disposal.

Delmar Disposal provides environmental and industrial services including wastewater disposal, tank cleaning, grease trap cleaning and related services. The company was founded in 1988 by Delmar “Buddy” Ham and is headquartered in Dallas (www.delmardisposal.com).

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 (www.taslp.com).

“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.”

The buy of Delmar is TAS’ second add-on acquisition in 2017 and follows the acquisition of Water Kleen Services in May 2017. Water Kleen specializes in high-pressure (10,000 to 24,000 psi) water blasting to clean mix tanks for asphalt, resin & paint, and oilfield storage tanks. The company is based south of Dallas in Ennis, TX (www.waterkleeninc.com).

“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 (www.teampartnersllc.com).

© 2017 Private Equity Professional | December 1, 2017

Wind Point Buys Ultra Environmental

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Valicor Environmental Services, a provider of non-hazardous wastewater treatment services and a portfolio company of Wind Point Partners, has acquired Ultra Environmental Services.

Ultra Environmental collects and processes non-hazardous industrial wastewater in the Midwest area of the US. According to Wind Point, the addition of Ultra’s wastewater pretreatment facility in Burlington, KY significantly increases Valicor’s wastewater capacity in the region.

“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.”

In June 2017, Wind Point Partners partnered with waste management and environmental services executive James Devlin to acquire Valicor Environmental Services, a provider of non-hazardous wastewater treatment services and a division of employee-owned Valicor Inc. As part of the transaction, Wind Point acquired all of Valicor’s wastewater and oil processing assets as well as ownership of the Valicor brand.

Under Wind Point ownership, Valicor now has a fleet of tanker trucks and a network of wastewater treatment facilities that collects, transports and processes a variety of wastewater products – oily water, leachate, soaps, line flush waste, and similar waste streams – that result from the manufacture of industrial and consumer goods. Customers include Honda, Harley-Davidson, Ford, General Electric, General Motors, Parker Hannafin, and many others. The acquired operations are headquartered halfway between Cincinnati and Dayton in Middletown, OH (www.valicor.com).

Wind Point’s add-on acquisition program for Valicor focuses on acquiring operators of centralized wastewater treatment (CWT) facilities as well as other providers of waste management and environmental services, including materials recycling, used oil processing, product destruction, and landfill solidification.

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 (www.wppartners.com).

© 2017 Private Equity Professional | July 10, 2017

TEAM Builds TAS Environmental

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TAS Environmental Services, a portfolio company of TEAM Partners, has acquired Water Kleen Services, a regional provider of environmental and industrial services.

Water Kleen Services is a provider of environmental and industrial services. The company specializes in high-pressure (10,000 to 24,000 psi) water blasting to clean mix tanks for asphalt, resin & paint, and oilfield storage tanks. Water Kleen also uses vacuum trucks to clean up dry and liquid industrial materials, and to clean mud pits and tanks on oil or gas well sites. The company’s services include the hydro excavation of underground pipelines and for digging holes with air knife capabilities. Water Kleen operates primarily in the Dallas/Ft. Worth metropolitan area but also works throughout Texas, Oklahoma, Louisiana and Arkansas. The company was founded in 1995 and acquired in May 2013 by brothers Michael and Andrew Janczak. Water Kleen is based south of Dallas in Ennis, TX (www.waterkleeninc.com).

“We purchased Water Kleen in 2013 from the founders and worked extremely hard since then to create a solid foundation for future growth,” said Michael Janczak, President and CEO of Water Kleen. “We have similar operating philosophies with TAS and have invested heavily in our people and equipment to provide exceptional service and value to our customers. TAS and Water Kleen have known each other for several years, and we were attracted to the culture, leadership and direction of TAS. I’m confident this transaction positions Water Kleen for continued success and growth with TAS.”

TAS Environmental Services 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 eight locations in Texas, Louisiana and Arkansas and is headquartered in Fort Worth, TX (www.taslp.com).

“The Water Kleen acquisition provides a tremendous catalyst to continue to grow TAS through an active buy-and-build effort. We have a strong appetite for future growth and will continue to look for additional acquisitions and new locations to enhance and expand our footprint,” said David Mann, Managing Partner of TEAM Partners.

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 (www.teampartnersllc.com).

As part of the Water Kleen acquisition, TAS has refinanced its capital structure with ORIX Mezzanine & Private Equity (www.orixmpe.com) and Dallas Capital Bank (www.dallascapitalbank.com).

© 2017 Private Equity Professional | May 18, 2017

J.F. Lehman Adds-On to NRC

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National Response Corporation (NRC), a portfolio company of J.F. Lehman & Company, has acquired Water Truck Services. This is the eight add-on acquisition completed by NRC since being acquired by J.F. Lehman in 2012.

Water Truck Services (WTS) is a provider of waste management and environmental services to companies and municipalities located in the Pacific Northwest.  “WTS signifies the latest strategic addition to NRC’s environmental services offering and strengthens our capabilities in the Pacific Northwest,” said Paul Taveira, CEO of NRC.

National Response Corporation (NRC) is a provider of environmental, emergency response, and industrial services, including industrial cleaning and maintenance, HAZMAT emergency response, oil spill response and cleanup, industrial firefighting and rescue, waste management, site remediation, and abatement. NRC is the largest commercial oil spill response organization in the US and has operations worldwide. The company has approximately 1,200 employees and is headquartered on Long Island in Great River, NY with regional offices throughout the US and internationally (www.nrcc.com).

“NRC continues to demonstrate strong growth by expanding its specialized service offering since our acquisition of the company in 2012.  WTS is another successful step in executing this element of NRC’s strategy,” said Alex Harman, Partner at J.F. Lehman & Company.

J.F. Lehman & Company is a middle-market private equity firm focused primarily on the maritime, defense, and aerospace sectors. The firm was founded by Dr. John Lehman, who served six years as Secretary of the United States Navy. To date, J.F. Lehman has made investments in companies with an aggregate transaction value of approximately $1.6 billion. The firm was founded in 1992 and is headquartered in New York with an additional office in Washington, DC (www.jflpartners.com).

Water Truck Services is headquartered in Sherwood, OR (no website found).

© 2017 Private Equity Professional | January 10, 2017

J.F. Lehman Completes NRC Add On

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National Response Corporation, a portfolio company of J.F. Lehman & Company, has acquired Boom Technology, a provider of environmental response services.

Boom Technology (BTI) is a marine and land environmental contractor that serves government agencies, commercial facilities, and residential customers in Maine and New Hampshire. Areas of specialization include inland and offshore marine hazardous material and oil spills; soil contamination and remediation; commercial and private vehicle and vessel accidents; natural and environmental disasters; pipeline ruptures and industrial fires; oil spill containment, cleanup and boom maintenance; facility decontamination; marine equipment and cargo decontamination; and road accidents and railroad derailments.

Two examples of work completed by BTI include responding to the Deepwater Horizon oil spill in 2010 and oils spills caused by Hurricane Sandy in 2012. BTI was founded in 2001 by Jim Fox to provide maritime oil spill containment and remediation services. The company is based in Gorham, ME (www.boomtechnologyinc.com).

NRC is a provider of environmental, emergency response, and industrial services, including industrial cleaning and maintenance, HAZMAT emergency response, oil spill response and cleanup, industrial firefighting and rescue, waste management, site remediation, and abatement. NRC is the largest commercial oil spill response organization in the US and has operations worldwide. The company has approximately 1,000 employees and is headquartered on Long Island in Great River, NY with regional offices throughout the US and internationally (www.nrcc.com). NRC is led by Paul Taveira, its Chief Executive Officer.

“NRC has continued to expand its geographic presence and service offering in recent years and the addition of Boom-Tech strengthens our capabilities in the Northeastern US,” said Mr. Taveira. “We are very happy to welcome the Boom-Tech team and look forward to continuing to grow NRC’s business in this region.”

This is the seventh add-on acquisition completed by NRC since J. F. Lehman acquired the company in March 2012. “NRC has demonstrated strong growth by expanding its geographic footprint and depth of service offerings since our acquisition of the company in 2012.  Boom-Tech is a continuation of this strategy and brings a strategic facility in Maine as well as new customer relationships to NRC’s portfolio,” said Alex Harman, a Partner at J.F. Lehman & Company.

J.F. Lehman & Company is a middle-market private equity firm focused primarily on the maritime, defense, and aerospace sectors. The firm was founded by Dr. John Lehman, who served six years as Secretary of the United States Navy. To date, J.F. Lehman has made investments in companies with an aggregate transaction value of approximately $1.6 billion. The firm was founded in 1992 and is headquartered in New York with additional offices in Washington DC and London (www.jflpartners.com).

© 2016 Private Equity Professional • 11-11-16

J.F. Lehman Acquires Sprint Energy Services

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J.F. Lehman & Company has acquired a majority stake in Sprint Energy Services, a provider of environmental services to the upstream energy industry.

Sprint’s products and services include temporary tanks and pumps, containment berms, remediation and clean-up, hygiene and cooling, volatile organic compound elimination, wellsite trash removal, and equipment cleaning.  Customers include oil & gas exploration and production companies, midstream pipelines, and other oilfield service companies.  Sprint has approximately 200 employees and is headquartered in Houston (www.sprintenergyservices.com).

“Sprint has built a highly respected brand name and outstanding reputation by providing specialized, responsive and high quality environmental services,” said Glenn Shor, Principal at J.F. Lehman.  “We are eager to continue Sprint’s history of excellence by leveraging their excellent management team and leading capabilities to grow the company.”

Sprint is the second environmental services company acquired by J.F. Lehman.  In March 2012, the firm acquired National Response Corporation, a Great River, NY-based provider of environmental and maritime services to the transportation, energy and industrial markets. Currently, National Response has about 540 employees.

J.F. Lehman & Company is a middle-market private equity firm focused primarily on the maritime, defense, and aerospace sectors. The firm was founded by Dr. John Lehman, who served six years as Secretary of the United States Navy. To date, J.F. Lehman has made investments in companies with an aggregate transaction value of approximately $1.6 billion. The firm was founded in 1992 and is headquartered in New York with additional offices in Washington, DC and London (www.jflpartners.com).

“I am pleased to announce our partnership with J.F. Lehman. The combination of their sponsorship and experience with Sprint’s comprehensive service offering and outstanding employees strengthens the company’s position to address substantial opportunity in our core end-markets,” said Chris Swinbank, Chief Executive Officer of Sprint.

Debt financing for the transaction was arranged by IBERIABANK. IBERIABANK was founded in 1887 and is headquartered in Lafayette, LA and has 280 offices in Louisiana, Arkansas, Tennessee, Alabama, Texas, and Florida (www.iberiabank.com).

2015 PEPD • Private Equity’s Leading News Magazine • 5-15-15

A&D Environmental Sold to JBC Group

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A&D Environmental Services, a portfolio company of Tillery Capital, Northstar Capital, and Centerfield Capital, has been sold to JBC Group, part of The RossWay Group of companies.

A&D Environmental Services is a provider of environmental and industrial services including heavy industrial cleaning, remediation of contaminated soil, hazardous and non-hazardous waste management, transportation of hazardous and non-hazardous materials, and emergency spill response and cleanup.  The company is headquartered in High Point, NC and has eight locations throughout the Southeast and Colorado (www.adenviro.com).

Tillery Capital, in partnership with the management team, acquired A&D from its previous owner via an asset purchase in January 2007.  In 2008 the company acquired Carolina Environmental Associates and NuWay Industrial Services and in 2011 completed the acquisition of Greenleaf Environmental.

Tillery Capital makes control equity investments in companies whose annual EBITDA is between $2 million and $10 million. Sectors of interest include: agriculture products and equipment; niche manufacturing businesses; commercial and industrial service companies; healthcare services; environmental services; and operationally complex businesses. Tillery Capital was founded in 2006 and has offices in Charlotte and Raleigh, NC, and Indianapolis (www.tillerycapital.com).

JBC Group, the buyer of A&D Environmental Services, is part of The RossWay Group of companies which is controlled by the Cromling family (Maureen Ross Cromling; her husband, William Cromling II; and their sons William Cromling III and Jon Cromling). The RossWay Group provides incineration, transportation, recycling and waste management services to manufacturers, recycling firms, waste management providers, and remediation contractors.  Included in The RossWay Group are Ross Environmental Services; Ross Incineration Services; Ross Transportation Services; ReTech Plastics; and ReTech Steel.  The RossWay Group is headquartered in Elyria, OH (www.rossenvironmental.com).

“With this acquisition, we are making significant progress towards accomplishing our goals of continued growth and diversification. This new partnership will enable our customers to continue to receive the high quality service that they have come to expect from us in the past 65 years with the addition of new, more comprehensive services,” said William Cromling III.

2015 PEPD • Private Equity’s Leading News Magazine • 5-15-15

Saw Mill Capital Completes Sale of Denali Water Solutions

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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

Trinity Hunt Acquires Miller Environmental Services

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Trinity Hunt Partners has acquired Miller Environmental Services, a provider of industrial cleaning and environmental services. Trinity Hunt partnered with Founder and Chief Executive Officer Charles Miller and his management team on this transaction.

“We are excited to partner with Charles Miller and the exceptional management team at Miller Environmental,” said Dan Dross, Managing Partner of Trinity Hunt. “With a strong culture of safety, proprietary technology-enhanced equipment, and experienced operations personnel, Miller is a premier provider of industrial cleaning and environmental services in the Gulf Coast marketplace.”

Miller Environmental Services provides industrial cleaning and environmental services to companies operating in the downstream, midstream, and upstream hydrocarbon processing markets. Services include tank cleaning, chemical cleaning, vacuum truck services, vapor control, hydroblasting, waste management and hydro-excavation.  The company has 400 employees and five operations centers located in Texas (Corpus Christi, Houston, Beaumont, Catarina, and Three Rivers) and a sixth operations center in Sulphur, LA. Miller Environmental Services was founded in 1985 and is headquartered in Corpus Christi (www.millerenviro.com).

“Our partnership with Miller presents a tremendous opportunity for Trinity Hunt and our investors to capitalize on a strong company that plays a critical role in an industry and region forecasted for significant growth,” added Mr. Dross. “With the expected expansion of downstream capacity, Miller is poised to become the leading industrial cleaning and environmental services company in the Gulf Coast region.”

Trinity Hunt invests in companies that have EBITDAs between $3 million and $15 million and have enterprise values between $10 million and $150 million. The firm considers investment opportunities across a range of industries but has a specific interest in industrial products and services, business services and healthcare services. Trinity Hunt is based in Dallas (www.trinityhunt.com).

“The Trinity Hunt team will serve as a valued partner in our continued growth,” said Charles Miller, who will remain Chief Executive Officer and a shareholder. “Their proven approach to growing businesses and significant resources will enable us to expand Miller’s reach and market share along the Gulf Coast.”

2014 PEPD • Private Equity’s Leading News Magazine • 10-2-14

RLJ Equity Partners Acquires EnviroVac

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RLJ Equity Partners has acquired EnviroVac Holdings, a provider of industrial cleaning, environmental services, and on-site maintenance support.

“EnviroVac is a trusted brand in the industrial services industry,” said Jerry Johnson, Managing Director of RLJ Equity Partners. “The company has a safety-first approach in providing the most innovative environmentally safe technology and quality operations to its clients and customers.  We are excited about the opportunities underway at EnviroVac under R. Kevin Jackson’s leadership, and we look forward to assisting the company as it continues to offer a premium standard of service.”

EnviroVac utilizes state-of-the-art equipment to provide industrial vacuuming, hydroblasting, watercutting and inspection services for customers who participate in the pulp and paper, chemical, steel, oil and gas, power generation and other industrial business sectors.  EnviroVac has a staff of more than 300 employees and 10 facility locations to serve customers throughout Alabama, Georgia, Mississippi, North Carolina and South Carolina, among other states. The company was founded in 1999 and headquartered in Savannah, GA (www.envirovac.us).

“We are delighted to join forces with RLJ Equity Partners, and I will be continuing my role as CEO as well,” said R. Kevin Jackson, EnviroVac founder, president and CEO. “Partnering with the RLJ brand will help EnviroVac continue to provide the safest and most professional services to our customers with optimal efficiency and support as we expand our services across the country, particularly throughout the Southeast and Gulf Coast regions.”

RLJ Equity Partners, LLC was joined in the transaction by Madison Capital Funding, New Canaan Funding and RLJ Credit, an affiliate of The RLJ Companies. EnviroVac was advised in the transaction by Farlie Turner & Co.

RLJ Equity Partners invests from $15 million to $30 million in companies valued between $50 million and $250 million. Target companies will have operating profits greater than $7 million and operating margins greater than 10%.  Sectors of interest include aerospace & defense; auto & transportation; business services; consumer retail; general industrial; and media & telecom.  RLJ Equity Partners was founded in 2006 by Robert L. Johnson in partnership with The Carlyle Group. The firm is headquartered in Bethesda, MD (www.rljequitypartners.com).

2014 PEPD • Private Equity’s Leading News Magazine • 6-13-14

Aperion Acquires Tri Con Works

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Aperion Management has acquired Tri Con Works, an environmental services provider specializing in landfill gas monitoring, collection and recovery.

The Tri Con Works management team, including Gary Smith, Bryan Robbins and Jay Maza, are investors in the transaction and will continue to manage the day-to-day operations of the company in partnership with Aperion.

“Tri Con will be Aperion’s second investment in the environmental services industry, and we are excited to partner with Tri Con’s outstanding management team”, said David Brady, Managing Director of Aperion Management. “The company has historically succeeded in growing its business while maintaining its best in class service and excellent safety record. Tri Con is well positioned for future growth opportunities, and we look forward to building this business while sustaining its high level of service.”

Tri Con Works is an environmental services provider specializing in the construction and maintenance of landfill gas monitoring, collection and recovery systems, as well as leachate systems.  Landfill gas is a by-product of the disposal of municipal solid waste in landfills and can lead to the release of greenhouse gases into the atmosphere. The monitoring, collection and recovery of landfill gas is a vital part of waste management from an environmental and safety perspective, and the related conversion of landfill gas into energy is a significant contributor of renewable fuel.

In the last five years, Tri Con has drilled over 150,000 feet and installed 2,500 landfill gas wells. In addition to landfill gas systems, Tri Con has installed over 100 leachate collection and storage systems, including turnkey installations of risers, pipeline systems, pumps and essential electrical lines.  Tri Con was previously owned by its management team in partnership with Ex-Blue, LP, an investment firm founded by former executives of Browning-Ferris Industries.  Tri Con Works was founded in 1998 and is headquartered in Houston (www.triconworks.com).

Graycliff Partners made a mezzanine investment in Tri Con Works to support the acquisition.  This investment is the fourth investment made by Graycliff Mezzanine II LP, a fund recently closed with over $250 million in commitments. Comerica Bank provided senior financing for the transaction.

“We are pleased to invest in Tri Con and support the buyout of the company by Aperion,” said Duke Punhong, a Principal of Graycliff Partners. “Tri Con is an exceptional company with strong leadership and a long history of growth. Together with Aperion’s significant expertise of investing in the waste industry, we see tremendous potential for expansion and growth. We look forward to leveraging our flexible approach and deep investment experience to partner with management and Aperion to see Tri Con through the next stage of growth.”

Graycliff Partners invests from $5 million to $25 million of equity and mezzanine capital in companies with revenues of at least $10 million and EBITDA margins of 10% or higher. Sectors of interest include manufacturing, services and distribution. Both control and minority investments are considered. The firm was formed in December 2011 by the former investment team of HSBC Capital.  Graycliff Partners is headquartered in New York with an additional office in São Paulo (www.graycliffpartners.com).

Aperion Management invests in small to mid-size businesses valued between $15 million and $150 million.  Operating independently since 2006, the principals of Aperion Management and its affiliates have been the lead investor on seven transactions representing approximately $160 million in enterprise value and $250 million in revenue.  Current platform investments include RoadSafe Traffic Systems, a provider of traffic safety equipment and services based in Chicago (www.roadsafetraffic.com); and Stella Environmental Services, a municipal solid waste transfer station management and transportation business based in Houston (www.stellaenv.com). Aperion Management is based in New York.

© 2014 PEPD • Private Equity’s Leading News Magazine • 4-4-14

Kinderhook Acquires Allstate Power Vac

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The Environmental Quality Company, a portfolio company of Kinderhook Industries, has acquired Allstate Power Vac, a provider of industrial and environmental services.

Allstate Power Vac provides industrial and environmental services including industrial cleaning services, tank & oil processing, sewer lining and maintenance services, and related industrial and hazardous waste services such as transport, storage and emergency response. The company is based in Rahway, NJ (www.aspvac.com).

Environmental Quality Company (EQ) is a fully integrated environmental services and waste management organization. The company owns treatment, disposal and recycling facilities and also offers a line of remediation, industrial cleaning and waste management services throughout the United States. EQ is based in Wayne, MI (www.eqonline.com).

“The acquisition of Allstate will further expand EQ’s market presence in the Northeast with the addition of seven strategically located facilities,” said Dave Lusk, CEO of EQ. “Allstate is recognized as a market leader with diverse service offerings and a versatile fixed asset base. Since its founding, Allstate has maintained a reputation for delivering extraordinary customer service with a focus on quality and safety. We look forward to partnering with Lou Galasso and the Allstate management team.”

Kinderhook Industries makes control investments in companies with transaction values of $25 million to $75 million in which the firm can achieve financial, operational and growth improvements. The firm 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 $770 million of committed capital and is based in New York (www.kinderhook.com).

The acquisition of Allstate represents the 14th environmental services transaction completed by Kinderhook in the last five years.

Financing for the transaction was provided by Comerica Bank.

© 2013 PEPD • Private Equity’s Leading News Magazine • 7-31-13

J.F. Lehman Acquires OP-TECH Environmental Services

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National Response Corporation, a portfolio company of J.F. Lehman & Company, has acquired OP-TECH Environmental Services.

OP-TECH is a provider of specialty environmental remediation and industrial services in the Northeast and Mid-Atlantic regions of the United States. The company is headquartered in Syracuse with additional branch offices located throughout New York State ((www.op-tech.us).

NRC, acquired by J.F. Lehman in March 2012, is a provider of United States Oil Pollution Act of 1990 regulatory compliance and emergency response services, and a provider of other diversified environmental, industrial, and emergency response services. The company has approximately 625 employees and is headquartered in Great River, NY with regional offices throughout the US and internationally (www.nrcc.com).

“NRC continues to execute its strategy of expanding its service offerings in environmental, industrial, and emergency response services both domestically and abroad,” said Alex Harman, Partner at J.F. Lehman. “OP-TECH demonstrates many of the qualities we seek in acquisition candidates and we are excited to have them as a part of NRC.”

J.F. Lehman & Company is a middle-market private equity firm focused primarily on the maritime, defense, and aerospace sectors. The firm was founded by Dr. John Lehman, who served six years as Secretary of the United States Navy. To date, J.F. Lehman has made investments in companies with an aggregate transaction value of approximately $1.6 billion. The firm was founded in 1992 and is headquartered in New York with additional offices in Washington, DC and London (www.jflpartners.com).

Senior debt financing for the acquisition of OP-TECH was arranged by BNP Paribas Securities as sole lead arranger.

© 2013 PEPD • Private Equity’s Leading News Magazine • 7-31-13