Case Study:

Enviro-Hydro Holdings, LLC


Company: Enviro-Hydro Holdings, LLC ("EnviroVac")
Portfolio company of Pine Tree Equity Partners, LLC ("Pine Tree")
Buyer: RLJ Equity Partners
Transaction Type: Sale

"Farlie Turner served as an excellent advisor to the company and was invaluable in guiding the transaction to close."

Kevin Jackson
CEO
Enviro-Hydro Holdings, LLC


Company Profile

  • Provides industrial cleaning and maintenance services including routine plant maintenance and planned facility outages using high-pressure washing equipment and vacuum trucks
  • Operates 10 locations in the Southeast, Mid-Atlantic and Gulf Coast regions

Situation Overview

  • Pine Tree Equity Partners acquired EnviroVac in 2009
  • Under Pine Tree's ownership, EnviroVac increased cash flow more than five times
  • Pine Tree completed an add-on of HydroVac Industrial Services, adding operating scale, geographic coverage and new customers to the business
  • Farlie Turner was engaged to conduct a sale process

Marketing Process Summary

  • Farlie Turner highlighted several investment considerations, including (i) recurring demand for maintenance due to production efficiency and insurance requirements, (ii) high customer switching costs, (iii) operating scale enabling the company to compete more effectively for larger contracts and outages and (iv) the company's high standards for safety
  • Farlie Turner conducted a broad process primarily focused on financial buyers given management's desire to retain current roles under new ownership

Outcome

  • Following a competitive process, RLJ Equity Partners acquired EnviroVac
  • Debt financing was provided by Madison Capital and New Canaan Funding
  • Transaction closed 58 days after LOI signed
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