Clairvest To Realize 87% IRR On Its Investment In Hudson Valley Waste
Toronto, Ontario (April 4, 2011) – A limited partnership which Clairvest Group Inc. (TSX:CVG) has invested in (“Clairvest LP”) and Clairvest Equity Partners III Limited Partnership (“CEP III”, collectively “Clairvest”) announced today the sale of their interests in Hudson Valley Waste Holding, Inc. (“Hudson Valley Waste”) to Waste Connections, Inc. (“Waste Connections”).
In March 2010, Clairvest invested US$35 million in Hudson Valley Waste. Under terms of the sale, Clairvest will receive proceeds of US$70 million, which equates to 2.0 times invested capital and an internal rate of return (“IRR”) of 87% over the 13-month duration of the investment. Consistent with its beneficial ownership through Clairvest LP, Clairvest Group Inc. realized 25% of this amount, or US$17.5 million, as compared to the December 31st carrying value of C$8.8 million.
“Clairvest originated this investment as part of its ongoing interest in the solid waste management industry. We found in Hudson Valley Waste a best-in-class, owner-operated company with leading performance within its industry and geography,” said Ken Rotman, Co-CEO of Clairvest Group Inc. “The financial return achieved on this investment is a tribute to Scott Earl, Hudson Valley’s CEO, and his management team who have done an outstanding job at growing earnings and improving the company’s position in its market. Waste Connections is buying a gem of a company.”
Since Clairvest placed its investment, Hudson Valley Waste has posted strong results while implementing the conversion of its customers to single stream recycling and building a materials recovery facility, thereby increasing the percentage of recycling materials collected and reducing its operating costs.
“Hudson Valley Waste has done a terrific job of investing capital and effort into projects that enhanced the service offering to its customers, were good for the environment and improved profits,” added Mr. Rotman.
Clairvest Group Inc. is a private equity management firm which invests its own capital, and that of third parties through the Clairvest Equity Partners limited partnerships, in businesses that have the potential to generate superior returns. In addition to providing financing, Clairvest contributes strategic expertise and execution ability to support the growth and development of its investee partners. Clairvest realizes value through investment returns and the eventual disposition of its investments.
Director, Investor Relations and Marketing
Clairvest Group Inc.
Tel: (416) 925-9270
Fax: (416) 925-5753