New York-based Centerbridge Partners has recapitalized Wastequip LLC, a manufacturer of waste and recycling equipment, and now owns a majority of the company. Wastequip said in a release Monday that it had eliminated over $550 million of debt and obtained a new $40 million revolving credit facility.
Wastequip, LLC (“Wastequip” or the “Company”) today announced that it has successfully completed the recapitalization of its balance sheet. As a result of the recapitalization, Wastequip has eliminated over $550 million of debt, reduced its annual interest expense by over 80 percent, and obtained a new $40 million revolving credit facility. The Company is now majority owned by affiliates of Centerbridge Partners, L.P. (“Centerbridge”).
In connection with the completion of the recapitalization, Mr. John G. Scott, President and Chief Executive Officer of the Company, announced his retirement from the Company. Mr. Scott said, “We successfully completed our recapitalization thanks to the hard work of our employees as well as the support from our vendors, customers, lenders and shareholders. Wastequip has emerged from the recapitalization with a strong balance sheet; the company is on a trajectory of growth, and I am proud of everything that we have accomplished.”
The Company announced the appointment of Mr. Martin “Marty” Bryant to succeed Mr. Scott as Chief Executive Officer. Mr. Bryant is a distinguished manufacturing executive, who served as a senior executive of Dana Corporation from 2008 to 2011, most recently as President of the Light Vehicle Products Division. Over his career Mr. Bryant has enhanced the performance of a number of businesses and brings global operational expertise to Wastequip.
Mr. Kyle N. Cruz, a Managing Director at Centerbridge, stated, “We commend John and the team for leading the Company through a complex recapitalization. Now, with the transaction complete, Wastequip is poised for growth. We are excited to partner with Marty Bryant and Wastequip management to further strengthen the Company’s leading market position.”
Mr. Bryant concluded, “I am excited to be joining Wastequip as we begin this new chapter together. The Company’s industry-leading products and services, culture of customer service and innovation and strong operating capabilities are key differentiators. We are committed to building long-term value for our customers, employees, communities and shareholders.”
Latham & Watkins served as the Company’s legal advisor, and Rothschild served as the Company’s financial advisor in connection with the recapitalization.
Wastequip is the leading North American manufacturer of waste and recycling equipment with an international network of 27 manufacturing facilities and the most extensive dealer network in North America. Wastequip’s broad range of waste and recycling equipment and systems are used to collect, process and transport recyclables, solid waste, liquid waste and organics. The Company’s brands include Wastequip, Toter, Galbreath, Pioneer, Accurate, Cusco, Mountain Tarp and Parts Place. On the web at www.wastequip.com .
Centerbridge Partners, L.P. is a private investment firm headquartered in New York with approximately $20 billion in capital under management. The firm focuses on private equity and credit investments. The firm is dedicated to partnering with world-class management teams across targeted industry sectors to help companies achieve their operating and financial objectives.