DLJ Merchant in waste services buy

The Credit Suisse affiliate has made its third waste industry investment with the acquisition of Deffenbaugh Industries, a waste services company in the Midwestern US.

DLJ Merchant Banking Partners has agreed to pay an undisclosed sum for Deffenbaugh Industries, which collects, transports and disposes of commercial and residential waste in the Midwest.

Johnny on the Spot

Deffenbaugh, headquartered in Kansas, serves approximately 450,000 customers, owns an 800+ acre landfill, operates one of the US’ largest recycling facilities and has rock quarrying operations. It also owns Johnny on the Spot, a portable toilet business.

“The deal will fall in our industrial portfolio,” Edward Johnson, managing director, told PEO. “We have had a fair amount of success historically in the waste and waste-related industry.”

In June, DLJMB made more than 3 times its investment on Wastequip, which it sold for roughly $616 million to Odyssey Investment Partners. It had purchased the company in May 2005.

The Deffenbaugh investment was made from the firm’s fourth fund, which closed on $2.1 billion in November 2006.

“We are approaching 70 percent invested with this investment,” Johnson said.