BGL Announces the Recapitalization of ECS Refining
Brown Gibbons Lang & Company announced today the recapitalization of ECS Refining, LLC (ECS), an industry leading electronic waste (e-waste) recycler, by ZS Fund, L.P. (ZS) in partnership with management. Terms of the transaction were not disclosed.
Established in 1980, ECS is one of the nation’s largest full-service recycling and end-of-life services providers for electronics, industrial equipment, and related hazardous waste. ECS’ unique and broad set of capabilities represents a complete “end-to-end” solution for IT and other electronic products (i.e., zero landfilling or overseas processing), spanning precious metals recovery and refining, cathode ray tube (CRT) glass recycling, and asset management, refurbishment, and resale.
Through the expansion of its facilities footprint and integration of key technologies and equipment, ECS possesses the most comprehensive and technically advanced operations in the e-waste industry, enabling it to extract the maximum value from materials and equipment while minimizing the impact on the environment. ECS’ commitment to processing innovation and 100 percent responsible recycling has led to the formation of partner-oriented customer relationships with Fortune 500 corporations, niche industry leaders, not-for-profit organizations, government entities, and educational institutions, among others. The company has generated significant growth in revenue and profitability as a result of its investments in processing technologies and workforce, as well as the strengthening demand for its services. In 2011, ECS was featured on Inc. magazine’s list of 5000 Fastest Growing Private Businesses in America.
“Although I am extremely proud of the business that we have developed over the past 32 years, I am most excited about our future and newly-formed partnership with ZS,” stated Jim Taggart, CEO and founder of ECS. “With rising volumes of e-waste, advantageous legislation, and increasing green initiatives within our targeted customer audience, our business stands well-positioned to accelerate its growth by capitalizing on the platform we have created. We are excited to have a strong financial partner in ZS to help facilitate our growth, both organically and through acquisitions.” He further commented that “the BGL team worked tirelessly to evaluate our strategic alternatives and was instrumental in developing and executing the transaction strategy.”
Adam Lehrhoff, a partner at ZS Fund added, “We are excited to have invested in one of the leading companies in the e-waste industry, and we look forward to working with Jim and Ken Taggart and the rest of the ECS team to continue to build upon ECS’ leadership position in the market.”
Andrew Petryk, Managing Director and Principal of BGL and head of the Industrials practice, stated, “We are proud to be associated with such a high quality management team and industry leader in the e-waste space. ECS is poised to consolidate the industry and build out its coast-to-coast footprint.”
Effram Kaplan, head of BGL’s Business and Environmental Services practice commented, “The combination of our industry expertise and product capabilities enabled BGL to provide a complete solution set to our client. We are very excited for ECS management and ZS to execute on their pursuit of furthering ECS’ position in the marketplace as the preferred provider of e-waste recycling services in the U.S.”
Andrew Petryk, Effram Kaplan, and Joe Boleski led the BGL transaction team. Thompson Hine LLP served as ECS’ legal counsel and Kirkland & Ellis represented ZS.