COMPASS DIVERSIFIED Investor Presentation
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CLEANEARTH
RECYCLING & DISPOSAL SOLUTIONS
PURCHASE PRICE
(AUG 2014)
$251mm
OVERVIEW
Case Study
Clean Earth is a provider of environmental services including de-characterization,
remediation, disposal, recycling, and beneficial reuse for hazardous and non-hazardous
wastes, contaminated soil, wastewater and dredged material. Clean Earth serves a variety of
industries including infrastructure, chemical, utilities, industrial, commercial, retail, and
healthcare markets.
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COMPETITIVE STRENGTHS
Market share leader
Significant portfolio of regulatory permits,
processing knowledge and equipment
Benefits from strengthening and
enforcement of environmental regulation
Increasing waste disposal costs and landfill
avoidance trends
Strong management team; average tenure
of approximately 10 years
26
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VALUE CREATION
Worked with management to execute an aggressive add-on acquisition strategy, repositioning the company's end markets and
customer base while broadening its facility footprint and permit portfolio.
Completed accretive add-ons of seven environmental services providers, representing approximately $100 million of annual
revenue and expanding the Company's footprint from 12 to 27 fixed facilities across the United States
.
Transformed revenue mix from primarily soil to majority hazardous waste treatment, which is higher margin, more programmatic and less
indexed to macroeconomic fluctuations
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Shifted contaminated materials end markets from primarily commercial to majority infrastructure
Developed advanced reporting and analytical systems to manage operational integration and track performance of the add-ons
Successfully targeted fragmented hazardous waste treatment market, acquiring 8 valuable RCRA Part B permits to expand
processing capacity and capabilities (no new commercial Part B permits issued in over 30 years)
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Deployed capital through proprietary transactions at accretive valuations in a high-multiple environment
DIVESTITURE OF CLEANEARTH
In June 2019, CODI completed the 100% sale of Clean Earth to Harsco Corporation (NYSE: HSC) for $625 million.
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