Sources: Charah Solutions Inc., Louisville, Ky.; CP staff
Charah Solutions and its largest shareholder, Baton Rouge, La.-based Bernhard Capital Partners LP, have agreed to an acquisition offer from SER Capital Partners, a private investor with New York and Silicon Valley offices. The transaction values the fly ash marketer and coal combustion residuals management specialist at $6/share of common stock, equal to a 134 percent premium of the company’s 20-day volume-weighted average price of $2.56/share as of mid-April. SER Capital also agrees to redeem Series A and B preferred shares at full liquidation preference, while senior notes due August 2026 remain outstanding. Subject to stockholder approval and other customary closing conditions, the transaction is scheduled for completion by Q3 2023, after which Charah Solutions will operate as a wholly owned SER portfolio company.
“The SER team combines decades of utility industry experience at firms such as Vistra, Duke and Exelon to back best of breed companies that are delivering solutions today to address their sustainability and environmental needs,” says Charah Solutions CEO Jonathan Batarseh. “Customers will benefit from combining our industry-leading offerings with SER’s forward-looking platform, long-term vision, and strategic resources. Our close to six hundred employees will also gain from our increased commitment and ability to ensure long-term career and growth opportunities.”
“Charah Solutions improves its customers’ communities by remediating environmental risks, recycling what was previously considered unusable, and delivering sustainable solutions,” adds SER Partner and Investment Committee Chair Sara Graziano. “Given our history in the power industry, we appreciate Charah Solutions’ strengths and reputation, a result of the dedication of employees who come to work every day committed to safety, quality, and environmental stewardship. We are committed to Charah Solutions’ long-term success as a key partner to utilities and as a strong employer in communities.”
“SER has significant experience in transforming businesses,” concludes Batarseh, who along with the present leadership team is set to remain with the company after the transaction. “We are confident that SER will be an excellent strategic and financial partner.”