Done Deals: CIVC Follows Dollar to Dumps –

CIVC Partners, a private equity investment affiliate of Bank of America, in December teamed up with management to acquire Wastequip, a manufacturer of equipment used to collect, process, and transport solid and liquid waste materials. The investment is one of a number of recent ventures into the environmental industry including Churchill Capital’s recent venture into the environmental industry (BUYOUTS Nov. 8, 1999, p. 6).

A source close to the deal said $100 million in debt financing was provided by Key Bank in Cleveland. DN Partners served as Wastequip’s advisor on the deal.

“We were attracted to this purchase by the great management team and 10% to 12% clip per year,” said Chris Perry, a partner at CIVC.

Based in Beachwood, Ohio, Wastequip has annual sales of $150 million and is a consolidator among waste handling equipment manufacturers. “We think we can grow the company to twice its annual sales,” Perry added.

Many investment professionals feel that the waste industry is booming and ripe for the pickings. In October 1999, Churchill Environmental and Industry Equity Partners formed a private equity fund with a target between $125 million and $175 million exclusively focusing on the environmental industry. And in the year’s biggest private equity deal, Allied Waste Management, in partnership with The Blackstone Group, Apollo Advisors, DLJ Merchant Banking Partners and Greenwich Street Capital Partners, purchased Browning Ferris Industries for $9.2 billion.

CIVC Partners manages $750 million on behalf of Bank of America, the sole limited partner in the fund. The firm received the commitment from the bank earlier in the year (BUYOUTS March 8, 1999, p. 6). CIVC Partners provides growth capital to middle-market companies.