Prospect Partners Sells Waste Harmonics
Prospect Partners has sold its interest in Waste Harmonics, of Victor, N.Y., in partnership with management and co-investor Expedition Capital Partners, LLC, to Arcapita, a global investment firm. Waste Harmonics, one of North America's top providers of managed waste services, had been a portfolio company of Prospect Partners' third fund, Prospect Partners III, L.P., since 2015.
Waste Harmonics delivers critical waste collection services across all U.S. states, as well as Canada, Puerto Rico and Guam, through an outsourced network of more than 5,000 vendors. The company's customers include major chains of banks, travel centers, movie theaters, supply chain management businesses, and convenience and grocery stores.
"Waste Harmonics' founder Mike Hess has been an exceptional CEO and visionary," said Prospect Partners' principal Brett Holcomb. "We have been thrilled to partner with him and his outstanding management team, which successfully redefined the managed waste services category and remain committed to delivering efficient, cost-effective solutions that benefit customers."
Waste Harmonics provides a comprehensive suite of asset-light, technology-enabled managed waste solutions, and serves predominantly blue-chip companies with locations typically spread across a wide geographic territory. The company's turnkey capabilities — which include consolidated waste collection and coordination, recycling, sustainability optimization, remote real-time equipment monitoring, equipment rental, compliance reporting, and waste stream auditing — are designed to simplify and optimize complex waste management processes while reducing their cost.
"Waste Harmonics has been an exciting growth story for Prospect Partners," added Erik Maurer, a principal of Prospect Partners. "Over the past four-and-a-half years, through technological innovation, organic growth, superior service delivery, and three strategic add-on acquisitions, Waste Harmonics has become the industry's only single-source provider of the full spectrum of waste management services. We have been honored to support its development from a pre-middle-market company into a dominant market leader with expansive programs and geographic reach."
"Prospect Partners was a terrific partner," said Waste Harmonics' Hess. "They really understand how to successfully finance and capitalize a business, and they understand the steps a maturing company needs to take as it grows. That invaluable wisdom allowed my team to focus on running and growing Waste Harmonics — growth that leapfrogged even our own grand expectations we set at the beginning of our partnership."
To discuss related opportunities, please contact Brett Holcomb or Erik Maurer.
Prospect Partners Makes Inc. List of Top Founder-Friendly PE Firms
Prospect Partners has been named one of the best private equity firms for entrepreneurs by Inc. magazine.
To compile its Top-50 list of founder-friendly PE firms, which appears in the magazine's July/August 2019 issue, Inc. identified firms that invest in founder-led companies, gathered portfolio growth data, and asked the entrepreneurs themselves about their experiences. Inc.'s list "highlights shops that treat entrepreneurs as partners and operators — rather than as part of the furniture."
"We're thrilled Inc. has recognized our long track record as a founder-friendly private equity firm," said Erik Maurer, Principal, and a founding member of the Prospect Partners' team. "Partnership has been a core operating value since our inception in 1998."
"We strive to build outstanding relationships with entrepreneurs as we work together to build small companies into leading middle-market businesses," Maurer continued. "We're upfront, trustworthy, passionate about our portfolio companies, and committed to helping founders surpass their own expectations. We are so thankful to all of them for helping us achieve such outstanding results over the past 21 years."
Prospect Partners Sells Tender Corporation
Prospect Partners has sold its interest in Tender Corporation (Tender), of Littleton, N.H., to Victor Capital Partners.
A leading player in the recreational outdoor products market, Tender develops, manufactures, and sells essential personal care, survival, and first aid products under a portfolio of niche, premium brands, including AfterBite®, the best-selling bite treatment in North America; Ben's® and Natrapel®, both top-selling insect repellents; The Itch Eraser®, a new itch relief offering; and Adventure Medical Kits®, the market leader in outdoor-focused first aid.
"Tender has been a successful investment for Prospect Partners, delivering consistent top-line growth across all of its core brands and channels," said Brad O'Dell, a principal of Prospect Partners. "With well-recognized brands consumers trust, strong distribution, and its focus on product innovation, Tender is well-positioned for continued growth with its new capital partner."
Tender's products are sold in more than 40 countries worldwide at over 35,000 retail locations, including food, drug and mass merchandisers, outdoor and sporting goods stores, and promotional product distributors. Jason Cartwright, Tender's CEO since 2000, will continue to run the company and remain a meaningful shareholder.
"It has been a pleasure working with Jason and his management team," said Rick Tuttle, a founding principal of Prospect Partners. "They built the company into the clear market leader for outdoor health and safety products and created a loyal following of passionate outdoor enthusiasts who are vocal advocates for the Tender brands."
Added Tender's CEO Cartwright, "Prospect Partners was an excellent partner throughout our tenure together. The team supported our vision and our growth strategy, which included multiple acquisitions, a state-of-the-art new 117,000-square-foot facility, and significant investment in brand development and marketing. We are excited to continue to further build the Tender platform in the years to come."
To discuss related opportunities, please contact Brad O'Dell or Rick Tuttle.
Prospect Partners Sells Innovetive Petcare
Prospect Partners has sold its interest in Innovetive Petcare, of Cedar Park, Texas, to Metalmark Capital. Innovetive Petcare, an operator of veterinary hospitals for companion animals, had been a portfolio company of Prospect Partners' third fund, Prospect Partners III, L.P., since 2015.
Innovetive Petcare was formed by Prospect Partners and two outside operating executives, animal health industry veterans Mark Ziller and Paul Covill, to acquire and operate specialty/emergency and general practice veterinary clinics throughout the Southeast and Texas. The company provides a suite of professional back-end business management services to support clinic operations and growth, allowing veterinarians and their staff to focus on implementing the best practices in management and animal care.
"Innovetive Petcare is an exciting player in the fast-growing veterinary care industry," said Brad O'Dell, a principal of Prospect Partners. "In less than four years, the company created a strong and scalable buy-and-build platform poised for long-term growth in an attractive market. It acquired well-respected practices, expanded service offerings and capacity, provided extensive back-office support, and made key management hires."
Innovetive Petcare now operates 13 clinics in five states, having successfully completed eight acquisitions, opened two new clinic locations, built a talented corporate management team, and launched a continuous learning platform for recruitment and training. That executive team remains fully in place following the sale transaction.
"We have been fortunate to work with Innovetive Petcare's deeply experienced and passionate operating team to support the achievement of significant growth initiatives, which resulted in strong performance for the company," said Rick Tuttle, a founding principal of Prospect Partners.
"From Day One, Prospect Partners trusted in our vision and ability to develop a premier veterinary hospital network," said Mark Ziller, Innovetive Petcare's President and CEO. "They supported us every step of the way as a true partner that provided the financial and strategic support we needed to successfully acquire our initial clinics, invest in their growth, and create a great business and strong brand. We look forward to continuing our platform's growth uninterrupted with our new investor-partners."
To discuss related opportunities, please contact Brad O'Dell or Rick Tuttle.