industrial cleaning services

Riverside and True North Add to IFS

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IFS Group, a portfolio company of The Riverside Company and True North Equity, has acquired SET Industrial Services.

SET provides industrial cleaning and related on-site facility services across the Midwest, including vacuum truck services, tank cleaning, and hydroblasting. The company is based in Henderson, KY (www.enviroset.com).

In March 2015, Riverside and True North formed IFS Group to acquire providers of non-discretionary industrial and field services to companies that are active in process industries including the utility, chemical, industrial, manufacturing and oil & gas sectors.

“The SET investment offers a complementary service offering and geographic footprint to our existing platform,” said Riverside Managing Partner Suzy Kriscunas. “The addition will continue to diversify IFS’s customer base and facilitate growth opportunities as both companies leverage combined resources.”

SET is the second acquisition under the IFS Group umbrella. The group’s first acquisition was the buy of Summit Environmental Services, a provider of outsourced industrial cleaning, excavation, and field services for Mid-Atlantic and Midwest-based customers in the power generation, utility, oil and gas, and general industrial markets.  Summit Environmental Services is based southwest of Pittsburgh in Belmont, WV (www.summit-environmental.net).

“SET has demonstrated strong operational and financial performance and represents an attractive addition to the broader platform strategy,” said Riverside Partner Tim Gosline. “We’re excited to work with the management team to continue its track record of success and strong customer service.”

Working with Ms. Kriscunas and Mr. Gosline on this transaction for Riverside were Partner Ryan Richards and Associate Cord Walker. Riverside Partner Anne Hayes helped secure financing for the transaction.

The Riverside Company is a global private equity firm focused on investing in and acquiring growing businesses valued at up to $400 million. Since its founding in 1988, Riverside has invested in more than 550 transactions and its portfolio includes more than 80 companies. The firm is headquartered in New York with 16 additional US and international offices (www.riversidecompany.com).

True North Equity invests in companies involved in cleaning, maintenance, repair, or other services in support of refineries, petrochemical and power plants, and oil and gas production. Target companies will have EBITDAs of $5 million to $20 million. The firm is based in the Detroit suburb of Birmingham (www.truenorthequity.com).

CIBC (Canadian Imperial Bank of Commerce) is IFC’s senior lender and it provided financing for this acquisition.

© 2018 Private Equity Professional | August 16, 2018

Rock Hill Exits Alpha Technical Services

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Rock Hill Capital Group has sold its portfolio company Alpha Technical Services (ATS) to Quala, a provider of bulk transportation container cleaning and a portfolio company of Advent International.

Alpha Technical Services, acquired by Rock Hill in February 2011, is an industrial and environmental services company that operates a full service state-of-the-art industrial cleaning facility specializing in difficult cleaning projects. The company’s services include container cleaning, tank and vessel cleaning, rail-truck transloading, hazardous waste management, blasting and liner removal, and site remediation.

The company also performs railcar inspections, repairs, and requalification services and has the capabilities to perform in-plant cleaning services at petrochemical facilities. ATS was founded in 2001 by the Waters Group and a group of key executives, led by CEO Michael Howerton. The company is based near Houston in Pasadena, TX (www.alphatechserv.com).

“We have enjoyed working alongside Mike Howerton and the ATS leadership team to expand ATS’s services during our investment and believe that the company is an industry leader in the capabilities they provide to their customers,” said Randall Hale, Founder and Managing Director of Rock Hill. “We believe Quala is a great partner to capitalize on ATS’s success and to expand its capabilities to additional locations and markets.”

Quala is the largest provider of tank cleaning, tank washing, testing, and repair services for portable liquid and dry bulk containers in the United States. The company was acquired by Advent International in August 2016 from Roark Capital Group. Quala is headquartered in Tampa (www.quala.us.com).

Rock Hill invests in small-to-lower middle market companies with enterprise values up to $75 million and EBITDA of $4 million to $10 million that are located in the South and Southeast regions of the US. Sectors of interest include industrial and energy services and value-added distribution. In January 2017, Rock Hill held a final close of Rock Hill Capital III LP with $151 million in capital commitments. The firm’s two earlier funds, Rock Hill Capital II LP, closed in 2013 with $88 million in commitments and Rock Hill Capital I LP, closed in 2008 with $49 million in commitments. Rock Hill was founded in 2007 and is based in Houston (www.rockhillcap.com).

SunTrust Robinson Humphrey (www.suntrustrh.com) was the financial advisor to ATS.

Quala was advised by Stifel, Nicolaus & Company (www.stifel.com) and financing was provided by PSP Investments Credit (www.investpsp.com), Carlyle Private Credit (www.carlyle.com), Antares Capital (www.antares.com) and Madison Capital Funding.

© 2017 Private Equity Professional | August 24, 2017

Audax Buys EnviroVac from RLJ

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Audax Private Equity has acquired EnviroVac, a provider of industrial cleaning and maintenance services, from RLJ Equity Partners.

EnviroVac is a provider of industrial cleaning and maintenance services. The company utilizes high-pressure washing and vacuum equipment to service companies operating in the pulp and paper, chemical, steel, oil and gas, and power industries. EnviroVac often serves as an in-house provider with embedded equipment and personnel on-site at customer facilities. The company, founded in 1998, operates ten facilities located in Louisiana, Mississippi, Alabama, Georgia, South Carolina, and North Carolina. EnviroVac is headquartered in Savannah, GA (www.cleancompany.com).

“Partnering with Audax provides access to a broad range of resources, enabling EnviroVac to reach new heights in the industrial cleaning industry, grow into new market segments and service lines, and complete additional strategic acquisitions,” said Kevin Jackson, CEO of EnviroVac.

“EnviroVac is a leader in the industrial cleaning industry. We are excited to partner with Kevin Jackson and the rest of the EnviroVac team and support them in this next phase of growth,” said Geoffrey Rehnert, Co-Chief Executive Officer of Audax.

The Audax Group makes control investments of $10 million to $100 million in middle market companies with transaction values of $25 million to $500 million. Sectors of interest include industrial manufacturing; energy; outsourced industrial services; consumer products; healthcare devices and services; non-asset based logistics; technology; aerospace & defense; business services; and direct marketing. The firm was founded in 1999 and has offices in Boston, New York and Menlo Park (www.audaxgroup.com).

RLJ Equity Partners acquired EnviroVac in June 2014 from Miami-based Pine Tree Equity Partners. “Since our investment three years ago, EnviroVac has thrived under the leadership of their President & CEO Kevin Jackson,” said Jerry Johnson, Managing Director at RLJ Equity Partners. “EnviroVac achieved considerable growth as a result of its intentional focus on innovation, customer service, and the integration of a significant strategic acquisition, which enabled EnviroVac to serve the Southeast by providing comprehensive services, thereby boosting revenues. We are proud to have been an instrumental part of EnviroVac’s success.”

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 Johnson in partnership with The Carlyle Group. The firm is headquartered in Bethesda, MD (www.rljequitypartners.com).

Twin Brook Capital Partners, the middle market direct lending subsidiary of Angelo, Gordon & Co., was the sole lead arranger and administrative agent for the debt facilities that supported Audax’s buy of EnviroVac. Twin Brook (www.twincp.com) focuses on loans to companies with EBITDA between $3 million and $50 million. The firm is led by Trevor Clark and Christopher Williams, two of the original founders of Madison Capital Funding.

Houlihan Lokey was the financial advisor to EnviroVac.

© 2017 Private Equity Professional | July 11, 2017