Waste Pro USA has been a portfolio company of Ares Capital Corp., a New York-based business development company that invested $40 million in the company, according to an April 2007 story in Waste News.
Executives at Roark Capital declined to comment. Executives at Ares Capital could not be reached for comment.
Founded in 2003, Waste Pro provides trash and recycling services in Florida, Georgia, South Carolina and Alabama.
One aspect of the company that may possibly attract Roark executives is the recurring revenue the company enjoys through its contracts with various municipalities. On June 30, Waste Pro announced a new long-term contract to provide garbage, yard waste and curbside recycling to the 4,100 homes in Beaufort, S.C.; earlier this year it landed similar contracts with the cities of Hollywood, Fla., and Winter Park, Fla. In April, Waste Pro acquired St. Pete Recycling Solutions, a provider of curbside recycling services based in St. Petersburg, Fla. Financial terms of that deal weren’t disclosed.
Atlanta-based Roark plans to make the investment from Roark Capital Partners II, a $1 billion fund it closed in February 2008. The shop’s most recent deal came last month, when it agreed to buy Pet Valu Inc., a Canadian chain that sells pet food and supplies, for $123 million.
Roark typically invests between $15 million and $350 million in companies with revenue between $20 million and $1 billion and EBITDA between $10 million and $100 million. The firm’s areas of interest include franchises in the restaurant, retail, service and consumer products industry; consumer and business services, food, direct marketing and financial services.
Neal Aronson, co-founder and former CFO of U.S. Franchise Systems Inc., founded Roark in 2000. —Bernard Vaughan