Kinderhook’s Custom Ecology buys B.J. Bear

Custom Ecology, a portfolio company of New York-based Kinderhook Industries, has acquired Ontario-based B.J. Bear. No financial terms were disclosed. Based in Kitchener, B.J. Bear is a provider of outsourced municipal solid waste hauling solutions.

PRESS RELEASE

New York, NY – Custom Ecology, Inc. (“Custom Ecology” or the “Company,” formerly known as Stafford Logistics, Inc.), a portfolio company of Kinderhook Industries, LLC (“Kinderhook”), announced today the acquisition of B.J. Bear Grain Co. LTD., (“B.J. Bear”). B.J. Bear is the fourth acquisition by Kinderhook on the Custom Ecology platform and Kinderhook’s 16th transaction in the environmental services sector. Financial terms of the transaction were not disclosed.

Headquartered in Mableton, Georgia, Custom Ecology is a niche market leader in the provision of outsourced waste services for large commercial waste collection businesses and waste generators. The Company’s diversified services provide hauling for three waste streams: municipal solid waste, hazardous waste and industrial waste. Based in Ontario, Canada, B.J. Bear provides outsourced municipal solid waste hauling services to large commercial waste collection businesses and waste generators. The acquisition of B.J. Bear expands Custom Ecology’s service geography into the Greater Toronto Area, which Custom Ecology currently services with its 55 truck operation based in Southeast Michigan.

Craig Stafford, President and Founder of Custom Ecology, stated, “We are excited to partner with Kyle Grundy, President of B.J. Bear, who brings 20 years of industry experience to Custom Ecology. The acquisition of B.J. Bear will allow us to grow our customer base in the Great Toronto Area and also allow us to provide intra-Canadian waste hauling to our existing customers.”

“Craig and his team have demonstrated a strong ability to identify, execute and integrate strategic acquisitions, which have expanded the Company’s geographic footprint and enhanced its service offerings,” said Rob Michalik, Managing Director at Kinderhook. “B.J. Bear offers significant strategic value for Custom Ecology with its expansive service territory, exceptional management team and superior customer service.”

Credit Suisse serves as the Administrative Agent for Custom Ecology’s existing credit facility. The transaction was financed with a combination of cash and debt funded by the Company’s revolving credit facility which is managed by Comerica Bank in its environmental services department. Kirkland & Ellis served as US legal counsel to Kinderhook and Custom Ecology. Wildeboer Dellelce served as Canadian legal counsel to Kinderhook and Custom Ecology.

About Kinderhook Industries

Founded in 2003, Kinderhook Industries is a private equity firm with $770 million 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 with transaction values of $25-$100 million 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.

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