Macquarie acquires Clairvest interest in DTG

Clairvest Group Inc., Toronto, has announced that it, a partnership managed by it, Clairvest Equity Partners V and the shareholders of DTG Enterprises Holdings Inc. have completed a recapitalization of DTG.

As part of the transaction, Clairvest has sold its equity interests in DTG to a fund managed by Australia-based Macquarie Asset Management (MAM).

In Washington state, DTG is the leading independent, vertically integrated nonmunicipal solid waste (MSW) recycling business providing integrated services for commercial, industrial and construction customers. Since its formation in 1999, DTG, Mill Creek, Washington, has grown from a single truck to a regional leader with an impressive network of collection assets, 12 material recovery facilities (MRFs) across the Puget Sound region and one construction and demolition (C&D) landfill, says Clairvest in a news release announcing the recapitalization.

In January 2020, Clairvest partnered with DTG Founder and President Dan Guimont and DTG CEO Tom Vaughn to embark on an aggressive growth plan. Over the next 34 months, DTG successfully completed 10 acquisitions and executed several greenfield growth projects.

Upon closing, Clairvest Group’s portion of sale proceeds was approximately $53.2 million. On a constant currency basis, the sale proceeds for Clairvest Group represent a multiple of capital invested of 6.2 times and an internal rate of return of 88 percent.

“We are extremely proud of the results generated by our management partners—Dan Guimont and Tom Vaughn—and the entire DTG team. Our partners not only demonstrated sustainability leadership in the Pacific Northwest but fostered a culture of safety first, operational excellence, growth and innovation,” Clairvest Managing Director Michael Castellarin says. “One of DTG’s noteworthy differentiators in a period of a very tight labor market was their commitment to employees. We are honored to have been partners in DTG’s success since 2020, and we are excited for DTG to continue its growth in the evolving environmental services landscape in the Pacific Northwest.”

With Clairvest’s help, Guimont says DTG was able to accomplish the goals it set in 2020.

“Our initial vision in partnering with Clairvest was to become the largest non-MSW waste and recycling company in the greater Seattle region, and we have achieved what we set out to do,” Guimont says. “Michael Castellarin and [Clairvest Senior Associate] Davey Mishra have supported our plan and encouraged us to pursue a wide range of initiatives, invest in our people and thus accelerate our growth significantly.”

Vaughn says the funding and support provided by Clairvest has helped create a “deep and wide defensive moat” of security that the company enjoys today.

“We partnered with Clairvest back in 2020 because of their strategy to help us build a strategically significant company, their experience, their willingness to invest and help and, most importantly, their focus on trusting and allowing their operating partners to lead and execute,” he says.

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MAM-managed funds have invested more than $4.5 billion in the waste industry in the Americas since 2007 through the Macquarie Infrastructure Partners series of funds.

Clairvest helps entrepreneurs build strategically significant businesses and has more than CA$3.3 billion of capital under investment. Under its current team, the company has initiated investments in 59 platform companies.

Nomura Greentech acted as exclusive financial advisor to Macquarie Asset Management, and White & Case acted as legal counsel.

Stoel Rives LLP acted as legal advisor to DTG.