Clairvest Group Inc. announces that it and Clairvest Equity Partners IV, and management shareholder partners have completed the sale of 100 percent of the interests in County Waste of Virginia to GFL Environmental Inc. County Waste is a private regional solid waste collection company that provides residential, commercial, industrial, and C&D waste collection, disposal and recycling services in the Virginia and Pennsylvania regions. At closing, Clairvest realized a multiple of capital of 3.6x and an IRR of 30% on its US$48 million investment before considering a deferred contingent payment that is based on achieving certain corporate milestones. The contingent payment, if earned, would bring the aggregate return on Clairvest鈥檚 investment to 4.6x.
At closing, CVG鈥檚 sale proceeds was US$46 million, compared to its US$13 million investment in County Waste and a US$28 million carrying value as at September 30, 2019.聽Clairvest made its initial investment in County Waste in 2013 following a prior partnership with the Company鈥檚 management at Hudson Valley Waste Inc; a successful investment Clairvest exited in 2011 that generated a 2.0x multiple of capital and an IRR of 88 percent.
Since 2013, County Waste successfully executed an aggressive acquisition program and completed over 60 follow-on acquisitions, growing revenue by over 400 percent and expanding market share across its core markets. 鈥淔or a second time, we are incredibly proud to have partnered with County Waste鈥檚 majority equity holder and CEO, Scott Earl, and to have worked alongside Jerry Cifor, a key advisor and board member to the Company. Under their leadership, County Waste grew to become an undeniable leader in the Virginia and Pennsylvania markets. It is a privilege to be an investor in a Company led by Scott, one of the most talented entrepreneurs in the waste management industry, and to work with Jerry Cifor, a trusted long-time advisor to Scott and Clairvest,鈥� said Michael Castellarin, Managing Director at Clairvest.
鈥淐lairvest brings a unique approach to private equity and I am glad that I decided to partner with them for the second time. They are true partners, focused on supporting entrepreneurs and helping build valuable companies. Their support and focus on our Company鈥檚 needs helped us generate strong results,鈥� said Scott Earl, CEO of County Waste of Virginia.
鈥淢ichael Castellarin, Adrian Pasricha and the team at Clairvest really understand our industry,鈥� said Jerry Cifor. 鈥淭hey contributed to County Waste鈥檚 success bringing resources, analysis and complementary insights that helped us achieve tremendous growth. Most importantly, they supported us through some challenging times, and that鈥檚 the mark of a true partner鈥� added Mr. Cifor.