Deffenbaugh Acquired by Private Equity Firm

DLJ Merchant Banking Partners, a private equity investment affiliate of Credit Suisse, has signed a definitive agreement to acquire Deffenbaugh Industries, Inc., a waste management and recycling firm headquartered in Shawnee, Kansas. The deal is expected to close by the end of this year.

Deffenbaugh, which services companies in the Midwest, provides collection, transportation, and disposal of commercial and residential waste. The company has around 450,000 customers, and is focused primarily in Nebraska, Kansas, Missouri and Iowa.

Additionally, the company operates a large recycling facility, as well as rock quarrying operations.

Deffenbaugh’s veteran senior management team will continue to lead the Company.

"What the deal means for Deffenbaugh is that we have a new owner and more capital," said Tom Coffman, a spokesman for Deffenbaugh. "There is a potential to expand geographically."

With the new ownership Coffman says the company could add services, improve routing and boost marketing abilities in the area.

Mark Rosenau, president of Deffenbaugh said, "We are excited to partner with DLJ Merchant Banking Partners and are confident that they have the expertise and resources needed to further invest in and support the growth of Deffenbaugh. Our customers will continue to enjoy the same superior service Deffenbaugh has provided to the community for 50 years."

"We are pleased to add one of the premier operators in the $52 billion waste management industry to DLJ’s portfolio," said Steven Rattner, Global Head of DLJ Merchant Banking Partners.

The acquisition is not the first for DLJ in the waste management/recycling industry. Several years ago DLJ acquired Wastequip, a manufacturer of recycling and waste management equipment.