O’Melveny Worldwide

O’Melveny Advises Solace Capital Partners and Patriot Environmental Services in Patriot’s Sale to Heritage-Crystal Clean

August 17, 2022

FOR IMMEDIATE RELEASE

CENTURY CITY—August 17, 2022—O’Melveny represented leading private investment firm Solace Capital Partners, L.P. and Patriot Environmental Services, Inc., a premier provider of comprehensive environmental services and emergency oil spill response, in Patriot’s sale to Heritage-Crystal Clean, Inc. 

Based in Los Angeles, Solace Capital Partners is focused on providing flexible capital solutions for middle market companies in the United States and Canada. The firm seeks to form collaborative partnerships with management teams and leverage its extensive resources to realize operational improvements and drive performance in its portfolio companies while generating attractive risk-adjusted returns for its investors./p>

Headquartered in Wilmington, CA, Patriot Environmental Services specializes in a wide variety of waste services, including transportation and disposal, environmental emergency response and cleanup, industrial cleaning, and oil spill response. Patriot operates eighteen locations, including two wastewater treatment facilities.

The O’Melveny team advising Solace was led by Century City M&A partner David Smith, counsel Zach Greenberg, and associates John Peshtaz and Charlie Greenberg.

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Contact:

Brandon Jacobsen
O’Melveny & Myers LLP
+1 213 430 8024
bjacobsen@omm.com

Solace Capital issued the following announcement

Solace Capital Partners Sells Patriot Environmental Services

Successful Exit Follows Several Strategic Add-On Acquisitions and Operational Enhancements Under Solace Capital Ownership

August 15, 2022 08:00 AM Eastern Daylight Time

LOS ANGELES--(BUSINESS WIRE)--Solace Capital Partners, L.P. (“Solace”), a leading private equity firm focused on providing creative capital solutions for middle market companies, today announced the sale of Patriot Environmental Services, Inc. (“Patriot” or the “Company”), a premier provider of comprehensive environmental services and emergency oil spill response, to Heritage-Crystal Clean, Inc. (Nasdaq: HCCI) for $156 million.

“This transaction represents a successful outcome for Solace’s investors and reflects our collaborative approach, ability to identify and execute complementary M&A, and provide operational support to our portfolio companies. Under Solace’s ownership, Patriot’s talented management team delivered on a strategic plan to meaningfully expand its footprint and solidify its position as the leading environmental services provider on the West Coast,” said Christopher Brothers, Co-Founder and Managing Partner of Solace. “Moreover, we thank Channel Investment Advisors and Angeleno Group for their partnership on this investment.”

Headquartered in Wilmington, CA, adjacent to the ports of Los Angeles and Long Beach, Patriot specializes in a wide variety of waste services, including transportation and disposal, environmental emergency response and cleanup, industrial cleaning, and oil spill response. Patriot operates eighteen locations, including two wastewater treatment facilities.

Since Solace’s initial investment in 2015, Patriot experienced significant growth and its revenue and EBITDA nearly tripled. In this time, the Company opened eight environmental services offices across California, Nevada, Oregon, Washington, and Arizona, expanded vertically into waste disposal through the acquisition and greenfielding of four disposal facilities, and recruited seasoned leaders, including 30-year industry veteran, Kent Bartley, as Chief Executive Officer. In addition to Mr. Bartley, Geoff Milbrandt, Chief Financial Officer, and Josh Teves, President, both played instrumental roles in growing the business.

“With Solace’s financial and operational support, we achieved substantial growth, enhanced our operational excellence, and built upon Patriot’s legacy and outstanding reputation,” said Mr. Bartley. “We look forward to Patriot flourishing under Heritage-Crystal Clean’s ownership and continuing to provide premium services to our customers.”

About Solace Capital Partners

Solace Capital Partners is a Los Angeles-based private investment firm focused on providing flexible capital solutions for middle market companies in the United States and Canada. Solace seeks to form collaborative partnerships with management teams and leverage the firm’s extensive resources to realize operational improvements and drive performance in its portfolio companies while generating attractive risk-adjusted returns for its investors. For more information, please visit www.solacecap.com.

Contacts

Media:
Nathaniel Garnick/Sam Fisher
Gasthalter & Co.
(212) 257-4170