CVG Clairvest Group Inc

Clairvest Group Inc. (TSX: CVG) (“CVG”), today announced that it, a partnership managed by it, Clairvest Equity Partners V (“CEP V”, collectively “Clairvest”) and the shareholders of DTG Enterprises Holdings, Inc. (“DTG” or the “Company”) have completed a recapitalization of DTG. As part of the transaction, Clairvest has sold its equity interests in DTG to a fund managed by Macquarie Asset Management (“MAM”).

DTG is Washington State’s leading independent vertically integrated non-MSW recycling business providing integrated recycling services for commercial, industrial, and construction customers. Since its formation in 1999, DTG has grown from a single truck to a regional leader with an impressive network of collection assets, 12 materials recovery facilities (MRFs) across the Puget Sound region and one construction & demolition (C&D) landfill.

In January 2020, Clairvest partnered with Founder & President Dan Guimont and CEO Tom Vaughn to embark on an aggressive growth plan. Over the next 34 months, DTG successfully completed 10 acquisitions and executed several exciting greenfield growth projects.

Upon closing, CVG’s portion of sale proceeds was approximately US$53.2 million. On a constant currency basis, the sale proceeds for CVG represent a multiple of capital invested of 6.2x and an IRR of 88%.

“We are extremely proud of the results generated by our management partners – Dan Guimont and Tom Vaughn – and the entire DTG team. Our partners not only demonstrated sustainability leadership in the Pacific Northwest, but fostered a culture of safety first, operational excellence, growth and innovation. One of DTG’s noteworthy differentiators in a period of a very tight labor market was their commitment to DTG’s employees. We are honored to have been partners in DTG’s success since 2020 and we are excited for DTG to continue its growth in the evolving environmental services landscape in the Pacific Northwest,” said Michael Castellarin, Managing Director at Clairvest.

“Our initial vision in partnering with Clairvest was to become the largest non-MSW waste and recycling company in the greater Seattle region, and we have achieved what we set out to do. Michael Castellarin and Davey Mishra have supported our plan and encouraged us to pursue a wide range of initiatives, invest in our people, and thus accelerate our growth significantly,” said Dan Guimont, Founder & President of DTG.

“We partnered with Clairvest back in 2020 because of their strategy to help us build a strategically significant company, their experience, their willingness to invest and help and, most importantly, their focus on trusting and allowing their operating partners to lead and execute. Over our partnership, Clairvest has been value-add and ensured DTG was well financed, which positively contributed to the deep and wide defensive moat that we have today,” said Tom Vaughn, CEO of DTG.

Stoel Rives LLP acted as legal advisor to DTG.

About ClairvestClairvest’s mission is to partner with entrepreneurs to help them build strategically significant businesses. Founded in 1987 by a group of successful Canadian entrepreneurs, Clairvest is a top performing private equity management firm with over CAD $3.3 billion of capital under management. Clairvest invests its own capital and that of third parties through the Clairvest Equity Partners limited partnerships in owner-led businesses. Under the current management team, Clairvest has initiated investments in 59 different platform companies and generated top quartile performance over an extended period.

Contact InformationStephanie LoManager, Investor Relations and MarketingClairvest Group Inc.Tel: (416) 925-9270stephaniel@clairvest.com