Pegasus Capital, LLC and Intersection LLC in Partnership with MissionPoint Capital Partners LLC, HarbourVest Partners LLC, and Ares Capital Corporation Have Formed CE Holdings to Acquire FCR, the Leading Recycling and Recovery Assets Unit, from Casella Waste Systems
Acquisition Establishes Strategic Platform Focused on Recovery and Transformation of Waste into Value Added Products; Includes Revolutionary IP to Sort Waste and Convert Refuse into Bio-Fuels, Engineered Feedstock, and Clean, Highly Efficient Energy
CE Holdings to Have Immediate National Footprint of 18 Recycling Facilities in Nine States
NEW YORK, Jan. 24, 2011 /PRNewswire/ -- Pegasus Capital, LLC, an affiliate of Pegasus Capital Advisors, L.P., and Intersection LLC announced today that CE Holdings, a new company formed in partnership with MissionPoint Capital Partners LLC, HarbourVest Partners LLC, and Ares Capital Corporation, has reached a definitive agreement with Casella Waste Systems, Inc. (Nasdaq: CWST), a regional solid waste, recycling and resource management company, to acquire select recycling assets of FCR. CE Holdings will serve as a strategic platform focused on the recovery of waste and community resources, and transforming refuse into value-added recycled products.
Leveraging the assets and intellectual property purchased from Casella, CE Holdings intends to build a market-leading company that recovers valuable commodities from the waste stream and converts them into useful products including recycled commodities, low-carbon energy, engineered feedstock, bio-fuels and other value-added recycled products. The company will help empower communities to use their own resources to generate revenue to create new jobs, fund budget short falls, and reduce their carbon footprint.
As part of the acquisition, CE Holdings will secure ground-breaking intellectual property which includes patents and publications related to the use of optical sorting for material characterization in recycling streams, Material Recovery Facility (MRF) automation, and the production of engineered feedstock from a waste stream. In the future, this technology will allow CE Holdings to take full waste streams, separate recyclables, and transform remaining waste into marketable products.
"Looking forward, we have the chance to revolutionize the waste management and recycling industry," said Jim Bohlig, CE Holding's CEO. "The ability to accept full waste streams and engineer valuable products from refuse will change the way we all think about waste."
FCR's current senior management team will continue to run operations post-acquisition. They are market-leading executives with the expertise and experience to provide holistic and customized solutions for communities nationally. Presently, FCR designs, builds and operates material recovery centers to service the recycling needs of municipal and hauling partners across the Eastern United States. They operate 18 facilities in nine states, recovering and returning to market nearly one million tons of recovered commodities each year. The facilities have a strong track record of developing sustainable, long-term private-public partnerships with the communities they serve.
"The opportunity to positively impact the communities we serve is the reason we exist," said Sean Duffy, the President and Chief Operating Officer of CE Holdings. "We see the future of America's communities as clean, independent, resilient, and maximizing the use of their own resources. Our team is energized and focused on serving our communities with a combination of innovative technology and 25 years of experience."
"CE Holdings is the latest demonstration of our commitment to developing successful companies and technologies that address the real issues of scarce resources facing our economy," said Craig Cogut, Managing Partner and founder of Pegasus Capital Advisors, L.P., who will serve as Chairman of the new Company. "This acquisition will allow us to build on an exceptional management team and solid business fundamentals. We look forward to working together with them and all of our talented partners at Intersection, MissionPoint, HarbourVest and Ares to take greater advantage of truly dramatic IP to significantly transform not only how America collects and utilizes waste, but how our country views its potential."
The group of investors, led by Pegasus Capital Advisors and MissionPoint Capital Partners will actively support the company and provide access to a significant amount of capital to facilitate the company's growth strategy. In addition to Pegasus and MissionPoint, HarbourVest Partners LLC, and Ares Capital Corporation, provided capital to complete the deal.
About Pegasus Capital Advisors, L.P.
Pegasus Capital Advisors, L.P. is a U.S.-based private equity fund manager that provides creative capital and strategic solutions to middle market companies across a variety of industries. The firm creates values from buying right and building businesses over time.
Established in 1995, Pegasus currently manages approximately $2.0 billion in assets through several private equity funds and has made more than 80 investments since its inception, generating very attractive risk adjusted returns. The firm employs over 60 uniquely talented investment and advisory professionals that work out of main offices in Cos Cob, CT and New York, NY, as well as several satellite locations. More information on Pegasus can be found at www.pcalp.com.
About Intersection, LLC
The CE Holding opportunity and strategy was identified and developed by Intersection. Intersection is a unique business development and investment company whose focus is on generating seminal events (e.g. large strategic sales and alliances, shifts in public policy, business model transformations, and the acquisition of companies that are not for sale). These seminal events often create meaningful equity value and accelerated market growth and recognition. Intersection is committed to initiatives that have positive societal impact, which by their nature, attract exceptional people, ideas and opportunities. Intersection's market focus is on the sustainability of the environment and human health. For more information about Intersection, please see www.intersectionpartners.com.
About MissionPoint Capital Partners
MissionPoint Capital Partners is a leading private investment firm focused on financing the global transition to a low-carbon, sustainable economy. MissionPoint provides growth capital to energy, industrial and financial services companies that enable cleaner, more sustainable energy, transportation and industrial infrastructure. For more information visit www.missionpointcapital.com.
About HarbourVest Partners, LLC
HarbourVest Partners, LLC is an independent global private equity firm that invests in buyout, venture capital, mezzanine debt, and distressed debt through primary partnerships, secondary purchases, and direct investments in companies. Investors in HarbourVest's funds include more than 350 institutional investors, including pension funds, endowments, foundations, and financial institutions throughout the U.S., Canada, Europe, Australia, Latin America, and Japan. HarbourVest and its subsidiaries have more than 230 employees, including more than 70 investment professionals deployed in Boston, London, and Hong Kong. In over 28 years of investing in private equity, the team has invested $4 billion directly in operating companies, committed more than $22 billion to newly-formed funds, and completed over $7 billion in secondary purchases.
About Ares Capital Corporation
Ares Capital (Nasdaq: ARCC) is a closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. With offices in Atlanta, Chicago, Los Angeles, New York and Washington, D.C., Ares Capital is a specialty finance company that provides integrated debt and equity financing solutions to U.S. middle market companies. Ares Capital invests primarily in first- and second-lien loans and mezzanine debt, which in some cases includes an equity component. To a lesser extent, Ares Capital also makes equity investments. Ares Capital is externally managed by Ares Capital Management LLC, an affiliate of Ares Management LLC, a global alternative asset manager and a Securities and Exchange Commission registered investment adviser. As of December 31, 2010, Ares Management LLC had approximately $39 billion of committed capital under management. For more information, visit www.arescapitalcorp.com.
SOURCE Pegasus Capital Advisors, L.P.