Houlihan Lokey Advises Environmental Recovery Corporation

Houlihan Lokey is pleased to announce that Environmental Recovery Corporation (ERC), a portfolio company of Rock Island Capital (Rock Island), has been acquired by VLS Recovery Services (VLS), a portfolio company of Aurora Capital Partners. The transaction closed on August 31, 2021.

Based in Lancaster, Pennsylvania, ERC provides wastewater treatment, industrial waste management, and other environmental services to customers in the Mid-Atlantic and Midwest. ERC provides a critical, end-to-end solution from collection to treatment and disposal for recurring nonhazardous liquid waste streams generated by a diverse base of over 1,200 customers.

Rock Island Capital provides equity and mezzanine capital to middle-market companies nationwide. Rock Island makes majority and minority investments in leading middle-market manufacturing, distribution, or service companies. Rock Island will invest capital for management buyouts of private companies or divisions of larger companies, generational changes of ownership, growth and expansion, or recapitalizations of family-owned or closely held businesses.

VLS Recovery Services is a leader in the waste and environmental services industries with a focus on unique and innovative sustainability offerings. VLS provides customized waste processing solutions for nonhazardous industrial and commercial waste, including landfill diversion and sustainability programs, solidification of liquid waste, recycling, and wastewater treatment. The company’s railcar cleaning division provides specialty cleaning services for difficult-to-clean products, including chemicals, hardened materials, and pressurized gases using the most environmentally friendly and safe processes in the industry. Also, the company’s marine division has state-of-the-art barge cleaning and repair facilities for a wide variety of petroleum and chemical solvents.

Aurora Capital Partners is a leading private equity firm focused principally on control investments in middle-market companies with leading market positions, stable industry dynamics, attractive business model characteristics, and actionable opportunities for growth in partnership with management.

Houlihan Lokey served as the exclusive financial advisor to ERC. This transaction highlights the team’s expertise and continued success advising companies in the environmental services sector.