The Winters’ family have been leaders in the waste management industry for 75 years. Their family-owned business, Winters Bros. Waste Systems of Long Island (WBLI), is the premier solid waste and recycling company, servicing commercial, residential, industrial, and municipal customers on Long Island. The family acquired the business in 2015. They had previously owned the core assets before selling the business to a publicly listed company in 2007.
To help finance the transaction, the Winters turned to Clairvest Group, a leading private equity management firm with over C$4 billion of capital under management, who they had been working with since 2005. “We had already partnered with Clairvest across two deals over the years, both of which were successful,” says Jimmy Winters, WBLI’s EVP and an owner of the business. “We knew them well and had a lot of mutual trust and respect, so they were the obvious choice.”
Partnering with the Winters family again was an easy decision for Clairvest too. “At the time, WBLI was a division of a public company that needed to be reinvigorated,” says Michael Castellarin, one of the firm’s Managing Directors who leads investments in the environmental services sector. “Our thesis was simple: Long Island was the Winters’ home turf, and no one knew this market better than they did. If anyone could improve the business and grow it, it was them.”
An Enduring Partnership and a Winning Formula
In the earliest stages of the deal, Clairvest played a critical role in conducting diligence. “We leaned on the Winters team for their operational due diligence, and they leaned on us for our detailed financial, legal, permitting, and environmental diligence,” said Castellarin. “There’s a huge amount of work that goes into doing a corporate carve out like this and we really had to take a lot of care to line all the pieces of the puzzle up.”
After the deal closed, Clairvest helped in a variety of other ways, from standing up financial and KPI reporting and aspects of the corporate overhead to helping recruit key members of the management team. They also arranged for and negotiated the debt facilities the company needed to fund 11 different acquisitions — including transfer stations, recycling facilities, and collection companies— and collaborated with the management team on annual budgeting and capital improvements.
“Clairvest gave us their financial and strategic perspective, which was very helpful and allowed us to focus on what we do best,” said Winters. “They were always there to help but never tried to tell us what to do. They are a patient and value-add partner that takes things in stride and does not overreact.”
Over the next 10 years, the company grew from $85 million in revenue to roughly $250 million. “It was not easy, especially the first few years,” says WBLI CFO Stephen Soucy. “We went through various stages along the way. We had to try a lot of solutions and change several of the existing contracts. Clairvest was a steady, consistent partner at every step of the journey.”
A Successful Outcome
By 2024, Clairvest had been invested in the business for nine years and the Winters realized they needed to decide what to do next. Ultimately, they decided to sell the business. “We had achieved more than we thought we would and really couldn’t say no.” says Winters. “It was the right time for us to sell.”
In July 2024, WBLI was acquired by Waste Management Inc. “It was a great deal for everyone involved and we couldn’t be more pleased,” says Winters. “We remain grateful to everyone at Clairvest. They have been excellent partners to us for the better part of two decades.”
Clairvest was also very pleased with the outcome and their partnership with the Winters. “The investment generated a 7.5x MOIC and an IRR of 24% for our investors,” says Castellarin. “We are very happy with the result and to be part of such a great outcome for our LPs and the Winters family.” Clairvest was ultimately awarded the PE Global Deal Maker Award, sponsored by PIXCELL, for its work on this transaction.
While members of the Winters family consider their next moves, one thing is for sure. “We will always work with our friends at Clairvest,” says Winters. “We know that they have our backs and we’ve got theirs.”
