Charah raises $88 million in initial public offering

Sources: Charah Solutions Inc., Louisville, Ky.; Renaissance Capital, Greenwich, Conn.; CP staff

Fly ash marketer and coal combustion byproducts management specialist Charah has begun trading on New York Stock Exchange under the symbol, CHRA. In a June 14 initial public offering, the company and key stockholders raised $88 million through the sale of 5,294,117 and 2,058,824 shares, respectively. The pool represents an approximately 23 percent stake in a business that reported 2017 sales of $430 million from two segments: Environmental Solutions, anchored by fly ash and bottom ash management and marketing contracts at coal-fired power stations; and, Maintenance and Technical Services, geared to fossil fuel- and nuclear-powered facility operators. 

The IPO follows a major growth phase for Charah Environmental Solutions. Over the past four years it has expanded a legacy, Mid-Atlantic and Midwest-centered fly ash processing and distribution footprint to points west and north. Since January 2017, moreover, Charah has built up its MultiSource network for Classes F and C ash and slag cement marketing through new management contracts at Indiana, Michigan, New York and Pennsylvania power stations, plus Colorado and Louisiana terminal construction. Earlier this year, it added ash beneficiation and mineral grinding technologies by acquiring Connecticut-based SCB International.

Fueling the development surge has been Bernhard Capital Partners, which acquired a 76 percent Charah stake, totaling $104 million, in January 2017. In Securities and Exchange Commission filings, management notes that after the IPO, major shareholders will include Bernhard Capital, 51.4 percent of shares; CEP Holdings, 15.3 percent; and, Management, 8.8 percent. The $50 million-plus Charah receives from the IPO will be earmarked for repaying term loan borrowings and general corporate purposes.


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