Kinderhook acquires STC


Kinderhook Industries has acquired STC Holdings, a Sumter, South Carolina-based provider of waste removal, transportation and disposal solutions. No financial terms were disclosed.

PRESS RELEASE

New York, NY – Kinderhook Industries, LLC (“Kinderhook”) is pleased to announce its acquisition of STC Holdings, Inc., dba Sumter Transport Company (“STC,” “Sumter,” or the “Company”). The transaction represents another successful platform investment in the environmental services industry for Kinderhook Capital Fund IV, a private equity fund raised in 2014 with $500 million of committed capital. Financial terms of the transaction were not disclosed.

Headquartered in Sumter, SC, STC is a leading provider of waste removal, transportation, and disposal solutions. The Company operates in four business segments: refinery services, kiln direct, landfill management, and equipment leasing. The refinery services segment comprises Sumter’s largest business segment, achieving significant historical growth due to its disruptive pricing model, superior service quality, and patented processes and technologies. The segment’s customer base is comprised of major domestic oil refinery companies. Moreover, Sumter has successfully developed a unique disposal network of hazardous waste kilns nationwide, maintaining relationships with nine of ten hazardous cement kilns in the United States. STC operates a 48 acre operational facility in Sumter, SC, which includes a kiln direct material recovery facility, distillation equipment, a full service laboratory, as well as a trucking terminal.

Pat Sears, industry veteran and Chief Executive Officer of STC, remarked on Kinderhook’s acquisition of the Company. “We are thrilled to be partnering with Kinderhook as the Company embarks on its next phase of growth. Kinderhook brings an extensive knowledge and expertise to the table via its previous investments in the waste services sector, as well as its expansive network of operating partners throughout the industry. We believe that this new partnership will prove extremely beneficial as we look to expand our geographic footprint, diversify our service offering, and grow our loyal customer base.”

Rob Michalik, Managing Director at Kinderhook, stated, “Sumter is a unique asset with a proven track record that has disrupted the hazardous waste removal industry with its innovative processes and patented technologies. The Company is widely recognized as a market leader, and we look forward to helping Pat and the team continue to execute on their growth initiatives.”

“Sumter has succeeded in flipping the cost curve in its industry by offering cement kilns an alternative fuel stream while providing oil refineries an effective slurry disposal solution,” said Cor Carruthers, Managing Director at Kinderhook. “We are excited about the opportunity to partner with such a dynamic organization as it continues to provide innovative solutions to its customers and pursues its aggressive growth strategy.”

Kirkland & Ellis LLP served as legal counsel to Kinderhook. Financing for the transaction was provided by Comerica Bank.

About Kinderhook Industries
Founded in 2003, Kinderhook Industries is a private equity firm with over $1.25 billion of committed capital and an investment philosophy based on combining senior management and operating experience in a variety of industries with the financial and investment know-how of private equity professionals. Kinderhook primarily makes control investments in companies in which the firm can achieve significant financial, operational and growth improvements.

The firm targets orphaned non-core subsidiaries of corporate parents, existing small capitalization public companies lacking institutional support and management-led recapitalizations of entrepreneur-owned companies. By providing access to capital, strategic advice and an extensive network of relationships, Kinderhook Industries has a history of successfully building privately held firms in partnership with management. For more information please visit: www.kinderhook.com

About Sumter
For over half a century Sumter Transport has delivered cost savings to its customers by providing innovative solutions for their waste handling needs. Sumter’s patented processes are efficient, economical alternatives to the conventional methods of tank cleaning. Sumter Transport further separates itself from the competition by managing all aspects of each project. These services include various methods of waste removal, patented transportation, and thermal disposal.

Sumter Transport Company is located in Sumter, SC and has been providing these variations of service since 1951. For over 60 years, Sumter Transport has been the leader in innovative, non-traditional approaches to waste management and transportation. Our emphasis has been on mechanical methodologies that reduce the need for human effort and exposure while increasing the speed of removal. With our network of disposal facility partnerships, we have become the largest supplier of refinery waste to cement kilns throughout the United States.

Health and Safety is Sumter Transport’s # 1 priority companywide. Our commitment to Sumter Transport Company’s health and safety program benefits everyone – our employees, our customers, the community, and the environment in which we share. Safety, quality, dependability, and solutions to your problems have been the keys to Sumter Transport’s continued years of success. For more information please visit: http://sumtertransport.com/about.php

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