Houlihan Lokey Advises CIRCON

Houlihan Lokey is pleased to announce the sale of CIRCON Holdings, Inc. (CIRCON), an industry leader in innovative waste management solutions and a portfolio company of Kinderhook Industries, LLC (Kinderhook), to Covanta Holding Corp. (Covanta), a leader in sustainable materials management and a portfolio company of EQT Infrastructure (EQT). The specific terms of the transaction were not disclosed.

CIRCON is a leading sustainability-focused environmental solutions business serving customers nationwide. CIRCON offers hazardous and nonhazardous waste management services, including specialized transportation, treatment, processing, and end disposal for industrial waste generators. As part of its sustainability-focused service offering, CIRCON is a market leader in manufacturing waste-derived fuels. CIRCON operates 20 facilities, including four RCRA Part B facilities and six CWT facilities across the U.S., with a large presence in the Midwest and Gulf Coast regions. CIRCON’s facilities are barge, rail, and truck accessible.

Founded in 2003, Kinderhook is a private investment firm that manages $5.4 billion of committed capital. Kinderhook has made more than 375 investments and follow-on acquisitions since its inception. Kinderhook’s investment philosophy is predicated on matching unique, growth-oriented investment opportunities with exceptional financial expertise and its proprietary network of operating partners. Kinderhook’s focus is on middle-market businesses with defensible niche market positioning in the healthcare services, environmental/business services, and automotive/light manufacturing sectors. Kinderhook has a track record of successfully and consistently building industry leaders.

Covanta is a leader in sustainable materials management, providing environmental services to businesses and communities. Through its network of facilities and state-of-the-art services, Covanta is a single-source partner in solving today’s most complex environmental challenges.

EQT is a purpose-driven global investment organization with more than €67 billion in assets under management across 26 active funds. EQT funds have portfolio companies in Europe, Asia-Pacific, and the Americas with total sales of approximately €29 billion and more than 175,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence, and market leadership.

The addition of CIRCON’s services improves Covanta’s wastewater, engineered fuels business, and its growing alternative fuels for kilns business. It also meaningfully expands the company’s footprint in the Gulf Coast and Midwest regions. The addition of CIRCON marks the largest single acquisition for Covanta in two decades, bringing with it more than 600 new employees and 2,500 customers.

This transaction highlights Houlihan Lokey’s preeminent position and continued success advising clients in the environmental services sector and, more specifically, the firm’s leading market share in advising on specialty waste transactions, following the successful sales of Vertex Energy’s Heartland Used Motor Oil Collections and Refining assets to GFL Environmental; VLS Environmental Solutions to I Squared Capital; US Ecology to Republic Services; Covanta to EQT; ERC to VLS Environmental Solutions; and Liberty Tire to ECP. Houlihan Lokey has successfully advised on more than 25 announced environmental services transactions since January 2021.