Date: June 28, 2006
Source: PR Newswire
MHF Logistical Solutions (MHF-LS), a leading asset-based logistics provider, said today that it has completed a management-led buyout of the company.
MHF-LS specializes in turnkey solutions -- incorporating packaging, transportation and technical services -- for generators and shippers of radioactive, hazardous and non-hazardous waste, materials and byproducts.
Allied Capital Corporation (NYSE: ALD) provided funds to support the transaction through second lien notes, senior subordinated notes and non- voting common equity. Union Bank of California and Merrill Lynch Capital provided additional secured debt to the company.
In May 2005, Allied Capital and other lenders provided financing for the recapitalization of MHF-LS. At that time, the private equity firm Blue Point Capital Partners took a majority equity stake in the company. With the transaction announced today, all of Blue Point's shares have been repurchased by MHF-LS.
MHF-LS senior management reinvested a significant portion of their equity ownership into the voting stock and debt of the company.
"We are delighted to have Allied Capital as our partner for this transaction," said John Evanko, MHF-LS founder, president and chief executive officer. "Allied Capital has been a value-added financing partner to our company since 2005. We are confident that as our fully-aligned equity partner, we can build even greater value in our company going forward."
Evanko added that, "Our customers will benefit from our access to capital for project infrastructure costs, the build out of additional transload and waste management facilities, as well as enhanced access to specialized fleet and rail equipment."
Said Dan Russell, Allied Capital managing director, "The MHF-LS transaction represents the latest example of Allied Capital capitalizing on a strong lending relationship with a company that then leads to a proprietary buyout opportunity in partnership with an exceptional management team.
"Since providing debt financing for the company in May 2005, we have deepened our knowledge of the business and respect for the management team of MHF-LS. When the opportunity arose to become their partner in a secondary buyout of the business, we were eager to do so. Going forward, we look forward to working with CEO John Evanko and his team to further build on the company's market-leading position," Russell said.
Evanko, meanwhile, also stressed that it will be "business as usual" for MHF-LS' clients, vendors, employees and other stakeholders.
About Allied Capital
Allied Capital Corporation, a leading business development company with total assets of more than $4 billion, provides long-term debt and equity capital to middle market companies to support management and sponsor-led buyouts, recapitalizations, growth and acquisitions. Allied Capital has paid regular, quarterly cash dividends to shareholders since 1963. Allied Capital invests in the American entrepreneurial economy by providing capital to companies seeking a long-term financial partner and access to managerial resources often unavailable to smaller companies. For more information, please visit www.alliedcapital.com.
ABOUT MHF LOGISTICAL SOLUTIONS
MHF Logistical Solutions (MHF-LS) is an asset-based, vertically integrated logistics provider that offers seamless solutions for generators and shippers of radioactive, hazardous and non-hazardous waste, materials and byproducts.
The company's clients include nuclear utilities, environmental services companies, large corporations, manufacturers and government agencies, such as the U.S. Army Corp of Engineers, the U.S. Department of Defense, the U.S. Department of Energy and others.
MHF-LS operating units provide all of the project engineering and regulatory management, packaging, technical services, transportation (rail, truck, marine) and equipment necessary for end-to-end movement and disposition of clients' streams of waste, materials and byproducts. Its integrated approach offers improved project safety and lower overall costs.
MHF-LS provides its transportation services by utilizing a captive fleet of private railcars and intermodal container equipment. It handles container and bulk material transfers for its North American clients at permanent transload facilities and through a network of other short-term or temporary transload sites. The company's packaging division designs and manufactures various rigid and flexible packaging systems for all types of materials. The company also provides specialized transport and waste-related technical services and consulting both domestically and internationally through a dedicated business unit.
MHF Logistical Solutions is based in the Pittsburgh, Pa., U.S., suburb of Cranberry Township, with other offices in the U.S. and representation in the U.K. The company's headquarters may be reached at 724.772.9800, or info@mhfls.com.
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