Clairvest Group Inc.

Clairvest Group Inc.

September 04, 2007 07:00 ET

Clairvest to Realize Close to Four Times its Capital on its 15 Month Investment in Winters Bros. Waste Systems

TORONTO, ONTARIO--(Marketwire - Sept. 4, 2007) - Clairvest Group Inc. (TSX:CVG) today announced the sale of Winters Bros. Waste Systems Inc. to IESI Corporation, a subsidiary of BFI Canada Income Fund.

Winters Bros. is the leading integrated non-hazardous solid waste services provider based on Long Island, New York. The family-run company provides collection, transfer and recycling services to commercial and industrial businesses, residences, municipalities, and construction sites, primarily in its home market of Long Island. The firm operates eight transfer stations and extensive collection operations.

In June 2006, Clairvest and a partnership managed by Clairvest invested US$15.7 million for a 36% share of Winters Bros. Under terms of the deal, IESI will pay a total of US$263 million for Winters Bros. Gross sale proceeds at closing received by Clairvest and its related partnership amount to US$51.7 million which equates to 3.3 times invested capital over the 15-month duration of the investment. The gain in Canadian dollars will be modestly smaller due to the change in the exchange rates.

Contingent consideration of up to an additional US$14.2 million, which is included in the purchase price, could be received by Clairvest and its related partnership subject to the performance of certain covenants and there being no claims against the representations and warranties.

"The success of our investment in Winters Bros. clearly demonstrates the power of our domain-based research in locating solid deals," said Ken Rotman, Co-CEO of Clairvest. "It also underlines the profitability of investing behind owner-operators with enterprises situated in consolidating industries."

Since Clairvest placed its investment, Winters Bros. has posted strong and profitable growth. The firm has completed several major acquisitions that have vaulted it from the third-largest waste management provider on Long Island to the largest.

"Under the leadership of Joe Winters, the company has done a terrific job of expanding market share while providing outstanding client service. This is a great deal for the Winters Bros. shareholders as well as IESI, given its regional operations," Mr. Rotman added, noting that IESI plans to retain Mr. Winters and his management team.

About Clairvest

Clairvest Group Inc. is a Canadian merchant bank that invests its own capital, and that of third parties through Clairvest Equity Partners Limited Partnership and Clairvest Equity Partners III Limited Partnership, in businesses that have the potential to generate superior returns. In addition to providing financing, Clairvest contributes strategic expertise and execution ability to support the growth and development of its investee partners. Clairvest realizes value through investment returns and the eventual disposition of its investments.

Forward-looking Statements

This news release contains forward-looking statements with respect to Clairvest Group Inc., its subsidiaries and their investments. These statements are based on current expectations and are subject to known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Clairvest, its subsidiaries and their investments to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general and economic business conditions. Clairvest is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.

Contact Information

  • Clairvest Group Inc.
    Cameron Williamson
    Chief Financial Officer and Corporate Secretary
    (416) 925-9270
    (416) 925-5753 (FAX)