Gryphon-backed HEPACO buys Environmental Management Specialists

HEPACO LLC, a Gryphon Investors portfolio company, has acquired Environmental Management Specialists. Financial terms weren’t announced. Environmental Management, of Cleveland, provides emergency response, remediation, and environmental services and operates across 11 service locations in Ohio, Indiana, Pennsylvania, and Kentucky. EdgePoint Capital Partners acted as financial adviser to EMS, while Tucker Ellis LLP was legal adviser to EMS. Moore & Van Allen PLLC provided legal advice to HEPACO.

PRESS RELEASE
HEPACO Acquires Environmental Management Specialists, Inc. (EMS)
Companies Combine to Create the Premier Emergency Response Service Provider in the Eastern U.S.
Charlotte, NC December 19, 2018 – HEPACO, LLC (“HEPACO”), a leading provider of environmental and emergency response services across 31 offices in the Eastern United States, announced today that it has acquired Environmental Management Specialists (“EMS” or “the Company”). Headquartered in Cleveland, OH, EMS is a leading provider of emergency response, remediation, and environmental services and operates across 11 service locations in Ohio, Indiana, Pennsylvania, and Kentucky. EMS Founder and Chief Executive Officer Jon Ransom will join the HEPACO executive team after the closing of the acquisition and maintain a significant equity stake in the combined company. Terms of the deal were not disclosed. HEPACO is majority-owned by San Francisco-based Gryphon Investors, a leading middle-market private equity firm, which purchased HEPACO in August 2016.
The combined company will now have more than 685 employees and a footprint of over 40 locations across the Southeast, Mid-Atlantic, Midwest, and Northeast regions in addition to the ability to respond to emergencies on a national basis through its managed network of third-party emergency response vendors.
HEPACO Chairman and Gryphon Operating Partner Phil Petrocelli said, “We are very excited to have completed the highly strategic acquisition of EMS and to partner with Jon Ransom and his team. EMS’ complementary geographic footprint and strong performance represent an attractive path for HEPACO’s continued growth.” HEPACO Chief Executive Officer Ken Smith said, “The HEPACO team is thrilled to welcome Jon and his team who will serve as integral members of HEPACO’s leadership team. We have been impressed by EMS’ reputation in the marketplace, outstanding safety record, blue chip customer base, and strong company culture.” Mr. Smith added, “This transformational acquisition will immediately expand our ability to serve clients across the Midwest, and we look forward to providing best-in-class emergency response and environmental service solutions to HEPACO and EMS customers across our growing footprint.”
Mr. Ransom stated, “We are excited to join forces with HEPACO to deliver an Amazing Customer Experience to clients of both companies across a much wider footprint and to continue our constant pursuit of excellence in the emergency response, remediation, and environmental services we provide. We look forward to the advantages that this acquisition creates for our customers and the opportunities it creates for our team.”
EdgePoint Capital Partners acted as financial advisor to EMS. Tucker Ellis LLP acted as legal advisor to EMS, while Moore & Van Allen PLLC provided legal advice to HEPACO.
About HEPACO
HEPACO (www.hepaco.com) is a leading provider of emergency response, environmental remediation, maritime services, wastewater treatment, and other industrial services across a diversified group of end markets including rail, oil & gas, transportation, power & utility, and manufacturing. The company has a broad geographic footprint across 31 locations and 20+ states in the Mid-Atlantic and Southeast United States and offers a three-hour or less response time within its footprint and on a national basis through its managed network of third-party emergency response vendors. HEPACO provides services on both an emergency response and planned basis and completed more than 6,500 projects in 2017.
About EMS
Based in Cleveland, OH, EMS (www.emsonsite.com) is a leading environmental contractor with more than 185 highly trained professionals working out of 11 service centers. EMS offers a full suite of environmental service solutions including emergency response, vacuum truck services, industrial cleaning, confined space entry services, waste transportation, site remediation, facility decontamination, equipment decommissioning, and lab packing.

About Gryphon Investors
Based in San Francisco, Gryphon Investors (www.gryphoninvestors.com) is a leading private equity firm focused on profitably growing and competitively enhancing middle-market companies in partnership with experienced management teams. The firm has managed more than $4.5 billion of equity investments and capital since its founding in 1997. Gryphon targets making equity investments of $50 million to $200 million in portfolio companies with sales ranging from approximately $100 million to $500 million. Gryphon prioritizes investment opportunities where it can form strong partnerships with owners and executives to build leading companies, utilizing Gryphon’s capital, specialized professional resources, and operational expertise.