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April 2012

Thermo Fluids Inc.

The Transaction

On April 10, 2012, CIVC Partners, L.P. (“CIVC”) completed the sale of Thermo Fluids Inc. (“Thermo Fluids” or the “Company”) to Heckmann Corp. (NYSE: “HEK”). The sale transaction represents CIVC’s second successful exit in the last four months.

The Company

Thermo Fluids, headquartered in Scottsdale, AZ, is a rapidly growing and highly profitable provider of route-based environmental services and waste recycling solutions. With a geographic presence in 18 states stretching from Washington to Texas, the Company provides a full suite of essential services to a diverse range of more than 20,000 commercial and industrial customers that generate high volumes of regulated non-hazardous waste on a daily basis. Thermo Fluids offers these customers a reliable, high-quality and environmentally responsible solution. The Company’s “one-stop” shop of collection and recycling services for waste products includes used motor oil, wastewater, spent antifreeze, used oil filters and parts washers. Since its founding almost 20 years ago, the Company has successfully built a highly scalable network infrastructure of more than 30 processing facilities, a fleet of nearly 200 well-maintained trucks, just under 200 railcars and over 220 highly trained employees making it the largest collector of used motor oil in the Western United States.

Value-Add Approach

In June 2006, CIVC acquired a controlling ownership position in Thermo Fluids. Leveraging the firm’s past experience with other route-based business services companies, CIVC’s investment thesis centered around the Company’s leading market position in a highly fragmented industry, a perception that demand substantially outpaced feedstock supply, strong cash flow, limited capital intensity, and multiple avenues for growth. The strength of the Thermo Fluids’ platform was validated through the macroeconomic recession and unprecedented volatility in the energy markets during CIVC’s investment period. During this time, CIVC was instrumental in helping the Company to diversify Thermo Fluids’ end-market composition, adding capabilities to the management team, modifying customer contracting strategies to reduce risk and add stability to collection costs, expanding the Company’s suite of environmental services offerings, completing eight highly accretive tuck-in acquisitions, and improving the Company’s working capital efficiency. Through such strategic positioning and led by a truly outstanding management team, the Company’s EBITDA increased by approximately 60% through CIVC’s near 6-year ownership period. The successful sale of Thermo Fluids highlights CIVC’s ability to identify and manage leading business services franchises that are capable of growing through difficult market conditions and consummate successful exit events for all stakeholders.

About CIVC Partners

CIVC Partners is a Chicago-based middle market private equity firm with over 20 years of investment experience. CIVC has completed 51 platform transactions and dozens of add-on acquisitions since 1989. CIVC manages approximately $1.3 billion in private equity funds and is currently investing out of CIVC Partners Fund IV. CIVC focuses on companies operating within the business services and financial services industries.

More information on CIVC Partners and its portfolio companies can be found at www.civc.com. For opportunities in the environmental and business services sectors, please contact Keith Yamada or David Miller.

 
 
CIVC PARTNERS: 191 N. Wacker Drive, Suite 1100, Chicago, IL 60606 | © 2017 CIVC Partners. All Rights Reserved.|CIVC PARTNERS: 191 N. Wacker Drive, Suite 1100, Chicago, IL 60606 | © 2016 CIVC Partners. All Rights Reserved.