Houlihan Lokey Advises VLS Environmental Solutions

Houlihan Lokey is pleased to share that the previously announced sale of VLS Environmental Solutions (VLS) to I Squared Capital (ISQ) has closed. VLS is a leading sustainability solutions and ESG-friendly waste services company in North America and a portfolio company of Aurora Capital Partners (Aurora). The transaction closed on August 17, 2022.

VLS provides mission-critical, customized waste and specialty cleaning and repair services to a variety of highly regulated industries. VLS operates two principal segments: nonhazardous industrial waste handling, treatment, and sustainable disposal, as well as rail and marine specialty cleaning and repair. As one of the only nationwide providers of ESG-friendly industrial waste solutions, the company’s sustainable disposal solutions are especially attractive for customers with zero-waste-to-landfill initiatives. The company offers a comprehensive set of waste management solutions that process industrial nonhazardous waste to create alternative engineered fuels for industrial processes, fuel for waste-to-energy generation, treated wastewater, and landfill solidification.

VLS’ Waste division 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. Today, VLS has more than 800 employees in 28 locations across the country.

Aurora is a leading Los Angeles-based private equity firm with more than $4.5 billion in assets under management. Founded in 1991, the firm focuses 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. Aurora provides unique resources to its portfolio companies through its Strategy & Operations Program and its team of experienced operating advisors. Aurora’s investors include leading public and corporate pension funds, endowments, and foundations active in private equity investing.

ISQ is an independent global infrastructure investment manager with more than $36 billion in assets under management focusing on energy, environmental infrastructure, utilities, digital infrastructure, transport, and social infrastructure in North America, Europe, Latin America, and Asia. Headquartered in Miami, the firm has offices in Hong Kong, London, New Delhi, Singapore, and Taipei.

Houlihan Lokey served as the lead financial advisor and assisted in marketing, structuring, and negotiating the transaction on behalf of VLS and Aurora.

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 US Ecology to Republic Services, Covanta to EQT, ERC to VLS and Liberty Tire to ECP, all within the past 18 months. Houlihan Lokey has successfully advised on 20 announced environmental services transactions since January 2021.