Deal is fourth platform acquisition in 20 months for Chicago private equity firm; second environmental services platform
CHICAGO, IL - September 25, 2006 - WHI Capital Partners (WHICP), a
Chicago-based private equity firm focusing on the lower-middle market,
announced today that it has acquired Lombard, Illinois-based Container
Recycling Alliance (CRA), the glass recycling division of Waste
Management, Inc. (NYSE: WMI).
With the CRA acquisition, WHICP has now acquired seven companies and
four platforms in the past 20 months. CRA is WHICP’s second platform
in the environmental services sector. Its first, Emerald Waste
Services, is one of the Southeast’s leading waste services firms,
managing commercial, residential and construction & demolition
waste streams via its hauling and landfill operations and portable
toilet services.
Container Recycling Alliance
CRA operates eight glass recycling facilities throughout the United
States. Employing approximately 150 people and processing roughly
500,000 tons of glass per year, CRA is the second largest operator of
glass recycling facilities in the United States. CRA utilizes
state-of-the-art automated ceramic detection and color sorting
equipment, as well as full bottle destruction and decasing capabilities.
The use of recycled glass, known as cullet, in the process of making
new glass containers significantly reduces energy costs, lessens the
need for virgin raw materials, and minimizes the release of emissions
like carbon dioxide. “The rise of energy costs has created strong
demand for clean cullet by the container manufacturers who are working
to maintain their profit margins,” said Tom Riek, CRA’s Chief Executive
Officer. “We look forward to working with our customers, and
establishing new supply sources, to provide the highest quality product
to meet existing and future demand.”
Mr. Riek partnered with WHICP in the purchase of the division, which
he previously ran for Waste Management. He served as President of CRA
from 2001 to 2004 before being promoted to Finance Director of Waste
Management Recycle America.
“CRA produced some of its most profitable years under Tom Riek and
his team’s leadership. Tom is a proven CEO with tremendous operational
expertise as well as a keen ability to develop longstanding and
mutually beneficial relationships with key suppliers and customers,”
said Adam Schecter, WHI Capital Partners Managing Partner.
About WHI Capital Partners
WHI Capital Partners (www.whicapital.com) is a Chicago-based private equity firm that invests in leading niche manufacturing, value-added distribution and specialty service companies with revenues between $10 – 100 million. WHICP focuses on creating a true partnership with a company’s management team with the goal of enhancing operational efficiency along with developing and executing a clearly defined growth plan to build value. Backed by the financial strength and resources of its parent firm, William Harris Investors, Inc., WHI Capital Partners provides a unique solution to help a company capitalize on its long-term opportunities. For more information contact Adam Schecter at (312) 621-0641 or adams@whicapital.com.