Date: April 4, 2011
Source: Waste Connections, Inc.
Waste Connections, Inc. (Folsom, CA), continuing its eastward expansion, is buying what it describes as the largest privately owned solid waste services company in New York's Hudson Valley. The company, Hudson Valley Waste Holding Inc. and its subsidiary, County Waste and Recycling Service Inc., has annual revenue of about $120 million, and serves 12 counties, with the majority of its waste collection, transfer and recycling operations in Albany and the surrounding Capital Region. Included in the deal are six collection depots, three transfer stations and a recycling facility. "County Waste has copied our playbook in building a leading position within its, markets, focused on controlling the waste stream and almost doubling in size over the past five years," Waste Connections CEO Ronald J. Mittelstaedt said.
The seller is a limited partnership controlled by Clairvest Group Inc. (Toronto, ON) which has made other bets in the waste industry and essentially doubled its money on this latest sale. Clairvest invested in Hudson Valley in March last year, shortly after making a killing (tripling its money) selling its stake in Long-Island, NY-based Winter Brothers to IESI in September, 2007. Incidentally, last week the Winter Brothers, who formed a new business based in Danbury, CT, announced their acquisition of Automated Waste Disposal (AWD), a company owned by the U.S. Marshals Service that had seized the business from former trash kingpin James Galante who is now serving time for racketeering.
PRESS RELEASE
April 4, 2011
Waste Connections Announces Acquisition of County Waste And Recycling Service, Inc.
Waste Connections, Inc. (NYSE: WCN) today announced that it has acquired Hudson Valley Waste Holding, Inc., and its wholly-owned subsidiary, County Waste and Recycling Service, Inc. ("County Waste"). Founded in 1990, County Waste is the largest privately-owned solid waste services company in New York's Hudson Valley, with total annual revenue of approximately $120 million. County Waste provides solid waste collection, transfer and recycling services across more than a dozen counties, the majority of which is situated in Albany and the Capital Region. The operations acquired include six collection operations, three transfer stations and one recycling facility.
"County Waste has copied our playbook in building a leading position within its markets, focused on controlling the waste stream and almost doubling in size over the past five years. The company also has invested almost $50 million over the past 24 months in new fleet, containers, and facilities to position itself for continuing growth. In October 2010, County Waste opened a new single stream recycling facility with an estimated capacity of 600 tons per day. Its market presence and asset quality are unique for a privately-held company operating in secondary, competitive markets," said Ronald J. Mittelstaedt, Chairman and Chief Executive Officer.
Waste Connections, Inc. is an integrated solid waste services company that provides solid waste collection, transfer, disposal and recycling services in mostly exclusive and secondary markets. The Company serves more than two million residential, commercial and industrial customers from a network of operations in 29 states. The Company also provides intermodal services for the movement of containers in the Pacific Northwest. Waste Connections, Inc. was founded in September 1997 and is headquartered in Folsom, California.
For more information, visit the Waste Connections web site at www.wasteconnections.com. Copies of financial literature, including this release, are available on the Waste Connections web site or through contacting us directly at (916) 608-8200.
Information Regarding Forward-Looking Statements
Certain statements contained in this release are forward-looking in nature, including statements related to contribution from acquisitions, growth and facility capacity. These statements can be identified by the use of forward-looking terminology such as "believes," "expects," "may," "will," "should," or "anticipates," or the negative thereof or comparable terminology, or by discussions of strategy. Our business and operations are subject to a variety of risks and uncertainties and, consequently, actual results may differ materially from those projected by any forward-looking statements. Factors that could cause actual results to differ from those projected include, but are not limited to, the following: (1) our acquisitions may not be successful, resulting in changes in strategy, operating losses or a loss on sale of the business acquired; (2) a portion of our growth and future financial performance depends on our ability to integrate acquired businesses into our organization and operations; (3) competition for acquisition candidates, consolidation within the waste industry and economic and market conditions may limit our ability to grow through acquisitions; (4) our indebtedness could adversely affect our financial condition; we may incur substantially more debt in the future; (5) each business that we acquire or have acquired may have liabilities or risks that we fail or are unable to discover, including environmental liabilities; and (6) fluctuations in prices for recycled commodities that we sell and rebates we offer to customers may cause our revenues and operating results to decline. These risks and uncertainties, as well as others, are discussed in greater detail in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K. There may be additional risks of which we are not presently aware or that we currently believe are immaterial which could have an adverse impact onour business. We make no commitment to revise or update any forward-looking statements in order to reflect events or circumstances that may change.
For more information, contact:
Waste Connections, Inc.
Worthing Jackman, (916) 608-8266
worthingj@wasteconnections.com.
PRESS RELEASE
April 4, 2011
Clairvest to Realize 87% IRR on Its Investment in Hudson Valley Waste
A limited partnership which Clairvest Group Inc. (TSX: CVG) has invested in ("Clairvest LP") and Clairvest Equity Partners III Limited Partnership ("CEP III", collectively "Clairvest") announced today the sale of their interests in Hudson Valley Waste Holding, Inc. ("Hudson Valley Waste") to Waste Connections, Inc. ("Waste Connections").
In March 2010, Clairvest invested US$35 million in Hudson Valley Waste. Under terms of the sale, Clairvest will receive proceeds of US$70 million, which equates to 2.0 times invested capital and an internal rate of return ("IRR") of 87% over the 13-month duration of the investment. Consistent with its beneficial ownership through Clairvest LP, Clairvest Group Inc. realized 25% of this amount, or US$17.5 million, as compared to the December 31st carrying value of C$8.8 million.
"Clairvest originated this investment as part of its ongoing interest in the solid waste management industry. We found in Hudson Valley Waste a best-in-class, owner-operated company with leading performance within its industry and geography," said Ken Rotman, Co-CEO of Clairvest Group Inc. "The financial return achieved on this investment is a tribute to Scott Earl, Hudson Valley's CEO, and his management team who have done an outstanding job at growing earnings and improving the company's position in its market. Waste Connections is buying a gem of a company."
Since Clairvest placed its investment, Hudson Valley Waste has posted strong results while implementing the conversion of its customers to single stream recycling and building a materials recovery facility, thereby increasing the percentage of recycling materials collected and reducing its operating costs.
"Hudson Valley Waste has done a terrific job of investing capital and effort into projects that enhanced the service offering to its customers, were good for the environment and improved profits," added Mr. Rotman.
About Clairvest
Clairvest Group Inc. is a private equity management firm which invests its own capital, and that of third parties through the Clairvest Equity Partners limited partnerships, in businesses that have the potential to generate superior returns. In addition to providing financing, Clairvest contributes strategic expertise and execution ability to support the growth and development of its investee partners. Clairvest realizes value through investment returns and the eventual disposition of its investments.
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