wastewater services

Wind Point Keeps Building Valicor

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Valicor Environmental Services, a portfolio company of Wind Point Partners, has acquired Midstate Environmental Services.

Midstate operates two centralized wastewater treatment (CWT) facilities and provides used oil collection and processing services throughout Texas and Oklahoma. The company is based near Dallas in Hutchins, TX (www.midstateenv.com).

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. In July 2017 the company completed its first add-on acquisition with the buy of Ultra Environmental, a Burlington, KY-based collector and processor non-hazardous industrial wastewater. Valicor is headquartered north of Cincinnati in Monroe, OH (www.valicor.com).

According to Valicor, Midstate has the capacity to expand its wastewater treatment operations which will allow Valicor to become one of the leading wastewater treatment providers in the state of Texas. “We are excited to extend Valicor’s leading network into Texas and Oklahoma. Valicor continues to expand into additional geographies in order to better serve both new and existing customers,” said James Devlin, Valicor’s Chief Executive Officer.  “Midstate will play a critical role in building out our offerings of wastewater and other environmental solutions. We could not be more excited about this addition to the Valicor platform.”

Valicor’s acquisition program focuses on acquiring operators of CWT facilities as well as other providers of waste management and environmental services, including materials recycling, used oil processing, product destruction, landfill solidification, and related services.

“Midstate further expands Valicor’s geographic reach and enhances our offerings of environmental solutions, which was a core tenet of our value creation plan when we acquired Valicor,” said Konrad Salaber, a Managing Director with Wind Point.

Wind Point invests from $30 million to $150 million in companies with revenues from $100 million to $500 million and EBITDAs of at least $10 million. Industries of interest include business services, consumer products and industrial products. Wind Point was founded in 1984 and is based in Chicago. In June 2017, Wind Point held a final closing of its eighth fund, Wind Point Partners VIII, with $985 million of capital commitments. The fund exceeded its initial hard cap of $750 million and marks the largest fund closing in Wind Point’s history (www.wppartners.com).

© 2017 Private Equity Professional | November 20, 2017

Wind Point Acquires Valicor

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Wind Point Partners has partnered with waste management and environmental services executive James Devlin to acquire Valicor Environmental Services, a provider of non-hazardous wastewater treatment services.

Valicor Environmental Services was a division of employee-owned and Dexter, MI-headquartered 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.  Valicor Inc. will continue to operate its remaining separation technologies business under a new name.

Valicor 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).

“Processing approximately 200 million gallons of wastewater and 20 million gallons of used fuel oil each year, Valicor provides essential environmental services to more than 3,000 customers across the Midwest,” said Konrad Salaber, a Managing Director with Wind Point. “These critical services not only allow customers to meet stringent federal, state, and local waste disposal regulations, but they also help clients reach important environmental goals, such as zero-landfill targets.”

Partnering on this transaction with Wind Point is industry veteran and long-time private equity executive James Devlin who will join Valicor as CEO.  From March 2013 to September 2015, Mr. Devlin was the CEO of ReCommunity, one of the largest independent recycling companies in North America. ReCommunity, which operates 27 facilities in 14 states serving a range of municipal, residential and commercial customers, is a portfolio company of HarbourVest Partners, Pegasus Capital Advisors, and Harvey & Company. From November 2008 to February 2013, Mr. Devlin was CEO of Phoenix-based Thermo Fluids, a portfolio company of CIVC and a provider of oil collection and processing services to more than 20,000 industrial customers located in the Western US. CIVC sold Thermo Fluids to Heckmann Corporation in March 2012. Prior to Thermo Fluids, Mr. Devlin held senior management positions with Waste Management, New Penn Motor Freight, and Browning Ferris Industries.

“I feel fortunate to have the opportunity to partner with Valicor’s Chief Operating Officer Dave Brown, Chief Commercial Officer Bill Hinton, and the entire organization as the company enters its next phase of growth,” said Mr. Devlin. “We intend to build on Valicor’s excellent foundation by expanding services in our current facilities, launching new locations, and executing add-on acquisitions in a highly fragmented market.”

According to Wind Point, Valicor’s acquisition program will focus on operators of centralized waste treatment (CWT) facilities and other providers of waste management and environmental services, including materials recycling, used oil processing, product destruction, and landfill solidification.

Financing for the transaction was provided by Antares Capital, Carlyle Private Credit, and Northwestern Mutual Capital. Kirkland & Ellis represented Wind Point as legal counsel and KPMG provided transaction advisory services.

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 | June 7, 2017