EQT Infrastructure II Buys Synagro

EQT Infrastructure II has acquired Synagro Technologies. EQT said the deal completes the refinancing of Synagro under a Chapter 11 plan of reorganization. Synagro’s balance sheet has also been restructured with about $200 million cut from outstanding debt. Synagro, a portfolio company of the Carlyle Group, filed for Chapter 11 bankruptcy in April. Press reports valued the sale to EQT at $480 million. Houston-based Synagro is the largest recycler of organic waste in the United States. RBC Capital Markets provided financial advice to EQT.


SCHIPHOL, Netherlands–(BUSINESS WIRE)–The acquisition of Synagro Technologies, Inc. (“Synagro” or the “Company”) by EQT Infrastructure II completes the refinancing of the Company under a comprehensive Plan of Reorganization approved by the Court with the full support of the Company’s creditors via the Chapter 11 process. Through working constructively with its creditors and backed by EQT Infrastructure II, Synagro’s balance sheet has been completely restructured, including an approximate USD 200 million reduction in outstanding debt. The new capital structure leaves Synagro with ample operational flexibility to execute on attractive growth opportunities.

“The new balance sheet and support from EQT’s Industrial Network will enable Synagro to capitalize on a variety of significant market opportunities,” said Eric Zimmer, Synagro’s President and CEO. “We are excited to have the full support of EQT as we work to execute our plan to continue and accelerate our strategic growth and increase the valuable solutions we deliver for our existing and new customers across the country.”

Execution of the new growth plans is already underway. This week Synagro announced the construction of a new bio-recycling center in Charlotte County, Florida. The state-of-the-art facility, which will go commercial in early 2014, will safely and efficiently provide for the recycling of up to 50,000 wet tons of biosolids using energy efficient technologies that convert the material to a valuable nutrient rich product. The facility will be capable of producing up to 75,000 cubic yards of Class AA compost for use in the local agriculture and landscaping market, creating a sustainable closed-loop process that returns the organic nutrients back to the soil.

“High quality treatment and recycling of biosolids protects human health and the environment and Synagro is the U.S. market leader,” says Glen T. Matsumoto, Partner at EQT Partners, investment advisor to EQT Infrastructure II. “We believe there are abundant opportunities to help Synagro grow its core business by finding additional ways to serve its customers and grow further into new U.S. markets. We look forward to working with Synagro’s management to build an exciting future for the Company.”

“Having had the opportunity to get to know the Synagro management team over the past several months, I am convinced that Synagro has an exciting future and I’m delighted to be a part of it,” says Geoffrey Roberts, new Chairman of the Board of Synagro and Industrial Advisor to EQT. “The public and industrial wastewater industry has ever increasing demands for the specialized types of services and the proven expertise and capabilities that Synagro uniquely provides to its clients day in and day out. The new Board and the extended EQT Industrial Network is committed to provide the support and resources necessary to ensure that this future is about innovation, first-class customer service and growth.”

EQT Infrastructure II was advised by the law firm of Weil Gotshal & Manges and financial advisor RBC Capital Markets.