Target: Container Recycling Alliance
Price: $75 million
Sponsor: Willis Stein & Partners
Seller: WHI Capital Partners
Legal Adviser: Sponsor: Kirkland & Ellis LLP; Seller: Katten Muchin & Rosenman LLP
The Chicago-based firm sold Container Recycling Alliance, a company that operates eight glass recycling facilities, to Strategic Alliance, a glass processor owned by
WHI Capital carved Container Recycling out of Waste Management Inc. in September 2006 for an undisclosed amount.
Since forming in 2004, WHI Capital has made six platform buys and 16 acquisitions total when including add-ons. The firm seeks to make control investments in North American companies in niche manufacturing, distribution and specialty services. Targets generate $10 million to $100 million in revenues and $2 million to $10 million in EBITDA. The firm typically writes equity checks of between $5 million and $15 million.
Getting this first exit was crucial, Schecter said. “It’s a big confidence-builder.”
The firm wants to ring up at least one more exit and establish more of a track record before seeking to raise a conventional buyout fund. To date,
WHI Capital would likely seek to raise around $150 million to $250 million, with William Harris Investors as an anchor backer, Schecter said. The firm might start pre-marketing the fund in late 2009 and then launch in early 2010.
Schecter said deal flow has picked up sharply for his firm in the last few months. It is into the due diligence stage for three separate companies and seriously researching five other deals. By contrast, three months ago the firm was not in active due diligence, and was only looking at a handful of intriguing deals, Schecter said.