Briarcliff Manor, NY – September 9, 2013. Saw Mill Capital LLC is pleased to announce that on August 26, 2013, Terra Renewal LLC (“Terra”), a portfolio company of Saw Mill Capital Fund V LLC (with Saw Mill Capital LLC, being referred to as “Saw Mill”), has completed the sale of Terra Renewal Services, Inc. (“Terra Services”), to Darling International, Inc. (NYSE:DAR). The purchase price for the transaction was approximately $120 million in cash. Houlihan Lokey acted as the exclusive financial advisor to Terra.
Terra Services, with pro forma adjusted EBITDA of approximately $17.2 million for the LTM period ending July, 2013 (before transaction synergies), represents two of Terra’s four service lines, and provides essential environmental services in over 24 states where Terra Services collects, hauls, reprocesses and recycles waste cooking oil and disposes of non‐hazardous, liquid and semisolid waste streams, from food processing companies and restaurants.
Saw Mill purchased Terra Services in March 2005, and in partnership with Terra’s management team has overseen the growth of Terra Services’ Revenue and EBITDA by 130% and 142%, respectively, since acquisition. According to Scott Budoff, a Partner at Saw Mill, “Our partnership with Andy McNeill and his senior management team allowed us to drive substantial organic growth and to complete four acquisitions at Terra Services, while at the same time professionalizing its people, processes and practices, creating a specialized business model with highly skilled people that was an attractive acquisition for Darling. We look forward to our continued partnership with Andy and his team as we continue to focus on growth and profitability at Terra.”
According to Andy McNeill, Terra’s President and CEO, “the sale of Terra Services to Darling International will allow us to focus our unique environmental services model on growth in the larger municipal and oil and gas markets. We look forward to continuing our successful partnership with Saw Mill as we focus on the continued growth of Terra’s revenues and profitability.”
Following the sale of Terra Services, Terra will continue as a portfolio company of Saw Mill under the name Denali Water Solutions.
Denali Water Solutions
Based in Russellville, Arkansas, Denali Water Solutions focuses on repurposing organic waste for beneficial reuse by providing mission critical environmental services to municipal and oil and gas customers on a nationwide basis, by providing for the collection, hauling, and disposition of municipal biosolids, and oil and gas field waste fluids. For more information about Denali Water, please visit www.denaliwater.com.
About Saw Mill Capital LLC
Based in Briarcliff Manor, NY, Saw Mill Capital LLC is an operations‐oriented private equity firm focused on acquiring businesses with $40‐150 million in revenues that can be meaningfully grown organically and through acquisitions. Saw Mill Capital partners with senior leadership teams to make control investments in businesses headquartered in North America. Saw Mill brings capital and unique resources to help companies reach their full potential by working collaboratively with senior leadership to create effective business strategies, implement best practices, and provide global market expertise.
