Lindsay Goldberg seals $275m exit

Lindsay Goldberg will sell waste management company PSC Environmental Services to Stericycle for $275 million, according to a statement.

PSC Environmental provides disposal services for pharmaceutical waste, household hazardous waste and on-site environmental management. It is a division of Houston-based PSC which also has an industrial services unit that was not a part of the transaction. Roughly $245 million of the transaction was paid in cash and about $30 million was paid by a two-year note. A portion of the cash was used to pay PSC Environmental’s debt.

Lindsay Goldberg initially invested in PSC in 2010. The firm was unavailable to comment at press time

PSC Environmental will add about $240 million in annualised revenues to Stericycle and will strengthen the company’s infrastructure to its healthcare, retail and other regulated waste customers, according to the statement.

New York-based Lindsay Goldberg is in market with its Fund IV, which launched earlier this year. The fund has a $4 billion target and is expected to close by mid-year, according to Private Equity International’s Research and Analytics division. The fund received a $75 million commitment from the Teachers’ Retirement System of Louisiana, PEI reported in February.

Lindsay Goldberg’s prior fund was raised under its former name: Lindsay Goldberg & Bessemer. Fund III raised $4.68 billion on a $4 billion target in 2008, according to PEI data. LPs in the fund include the North Carolina State Treasury, the Finnish Local Government Pensions Institution and Espoo, Finland-based Elo Mutual Insurance Company.

Fund III was generating a net internal rate of return of 7.2 percent as of 30 September 2013, according to documents from Louisiana Teachers’ investment consultant Hamilton Lane. 

Fund IV will invest in mid- and large-market companies primarily in the US, though Lindsay Goldberg’s prior funds have had exposure in Europe through a team of affiliate partners in Germany and Norway. Up to 40 percent of the capital can be invested outside of North America. Targeted industries include industrials, utilities, consumer products, and healthcare.

Lindsay Goldberg is led by co-founders and co-managing partners Alan Goldberg and Robert Lindsay.