The Clairvest Group has sold County Waste of Virginia, a regional solid waste management company, to GFL Environmental, a portfolio company of BC Partners and Ontario Teachers’ Pension Plan.
County Waste provides residential, commercial, industrial, and construction and demolition (C&D) waste collection, disposal and recycling services in the Virginia and Pennsylvania regions. The company, led by CEO Scott Earl, is headquartered in West Point, Virginia.
Under Clairvest’s ownership, County Waste was very acquisitive and completed over 60 add-on acquisitions, growing revenue by over 400% and expanding market share across its core markets.
Clairvest invested in County Waste in April 2013 following a prior partnership with the company’s management, including Mr. Earl, at Hudson Valley Waste, an investment Clairvest exited in 2011 that generated a 2x multiple on invested capital and an 88% IRR.
At the closing of the County Waste sale to GFL, Clairvest realized a multiple on invested capital of 3.6x and a 30% IRR on its $48 million investment. Included in the sale is a deferred contingent payment that is based on achieving certain corporate milestones. The contingent payment, if earned, would bring the aggregate return on Clairvest’s investment to 4.6x invested capital.
“For a second time, we are incredibly proud to have partnered with County Waste’s majority equity holder and CEO, Scott Earl, and to have worked alongside Jerry Cifor, a key advisor and board member to the company,” said Michael Castellarin, a managing director at Clairvest. “Under their leadership, County Waste grew to become an undeniable leader in the Virginia and Pennsylvania markets. It is a privilege to be an investor in a company led by Scott, one of the most talented entrepreneurs in the waste management industry, and to work with Jerry Cifor, a trusted long-time advisor to Scott and Clairvest.”
“Michael Castellarin, Adrian Pasricha and the team at Clairvest really understand our industry,” said Mr. Cifor. “They contributed to County Waste’s success bringing resources, analysis and complementary insights that helped us achieve tremendous growth. Most importantly, they supported us through some challenging times, and that’s the mark of a true partner.”
Toronto-based Clairvest invests in mid-market companies, principally in North America, across a range of industries. Clairvest looks to invest from $15 million to $100 million in equity capital in companies with EBITDAs from $5 million to $50 million. Desired ownership percentages range from 20% to 80%.
“Clairvest brings a unique approach to private equity, and I am glad that I decided to partner with them for the second time. They are true partners, focused on supporting entrepreneurs and helping build valuable companies. Their support and focus on our company’s needs helped us generate strong results,” said Mr. Earl.
GFL Environmental, which was acquired by BC Partners and Ontario Teachers’ in May 2018, is the largest privately-held and the fourth largest environmental services company in North America. The company is a provider of environmental management services for both hazardous and non-hazardous solid and liquid waste and offers soil remediation services, as well as site excavation, demolition, soil retention, foundations installation, and specialty infrastructure project services. GFL operates across Canada and in 20 states in the United States, with over 9,000 employees providing local service to approximately 4 million households under municipal contracts, and more than 135,000 industrial, commercial and institutional customers. GFL is headquartered near Toronto in Vaughan, Ontario.
Ontario Teachers’ Pension Plan is one of Canada’s largest and most active pension investors with C$191 billion in assets under management. Teachers’ has offices in Toronto, Hong Kong and London.
BC Partners has €20 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, New York and Paris. Since its inception, BC Partners has completed 113 private equity investments in companies with a total enterprise value of €145 billion and is currently investing its tenth private equity fund.
© 2020 Private Equity Professional | January 7, 2020
Kinderhook Industries has acquired Chemtron Corporation from CapitalWorks which acquired the company in November 2015.
“Chemtron represents an extremely unique set of assets in the sector,” said Rob Michalik, a managing director at Kinderhook. “The company’s diverse processing capabilities and ability to accept a wide range of waste streams is an enormous advantage in the marketplace as clients are increasingly focused on diversion and reuse of their waste.”
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 was founded in 2003 and is based in New York (
CapitalWorks, the seller of Chemtron, invests in companies with enterprise values of $15 million to $60 million, revenues of $15 million to $75 million, and EBITDA of $3 million to $9 million. Sectors of interest include niche manufacturing, value-added distribution, business services, aerospace and defense, and specialty chemicals. The firm was founded in 1999 and is headquartered in Cleveland (
