|AIG HIGHSTAR CAPITAL II, L.P. ACQUIRES NORTHEAST WASTE SERVICES, INC. FROM FUNDS MANAGED BY DDJ CAPITAL MANAGEMENT, LLC|
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NEW YORK--Oct. 4, 2005--AIG Highstar Capital II, L.P. (Highstar II), a private equity fund sponsored by AIG Global Investment Group, has agreed to purchase North East Waste Services, Inc. (NEWS) from funds managed by DDJ Capital Management.
The sale is subject to customary closing conditions and regulatory approvals, which the parties expect to receive within 30 to 60 days.
NEWS is a Marlborough, MA based company that specializes in the transportation and disposal of non-hazardous municipal solid waste in the Northeastern U.S. NEWS owns and/or operates five landfills, five transfer stations, three long haul trucking operations and two short haul collection operations in Massachusetts, New Jersey, Pennsylvania, Vermont and Washington, D.C. that collectively handle approximately 10,000 tons of solid waste per day.
Commenting on the purchase, Highstar II Managing Partner Christopher Lee stated, "Highstar II has developed considerable expertise in the Northeastern U.S. waste market based on our ownership of American Ref-Fuel's waste-to-energy business. We believe that this transaction presents Highstar with a great opportunity to re-enter what we believe is an attractive market. We are excited to acquire NEWS from DDJ, and will endeavor to ensure that the company continues to adhere to the high standards of integrity, customer focus, community support and commercial innovation that have been the hallmarks of NEWS' operation under DDJ's ownership."
Also remarking on the sale of NEWS, David J. Breazzano, Principal of DDJ Capital Management, stated, "AIG Highstar is acquiring an outstanding business run by a first class management team. We have little doubt that NEWS will create value for AIG Highstar much in the same way it did for the funds managed by DDJ Capital Management".
About AIG Highstar Capital II, L.P.
AIG Highstar Capital II, L.P. (Highstar II) is a leveraged buyout fund sponsored by AIG Global Investment Group. Highstar II and its predecessor fund, AIG Highstar Capital, L.P. (collectively, the Highstar Funds), seek investment opportunities in infrastructure related businesses and assets with stable cash flows and value enhancement opportunities. The Highstar Funds have made investments and investment commitments in gas transmission and storage, power generation, waste-to-energy, water and waste water and transportation businesses and assets. The Highstar Funds are based in New York City and Houston.
About AIG Global Investment Group and American International Group, Inc.
AIG Global Investment Group (AIGGIG) comprises a group of international investment companies that provide advice, investment products and asset management services to clients around the world. AIGGIG companies are subsidiaries of American International Group, Inc.
American International Group, Inc. (AIG), world leaders in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed in the U.S. on the New York Stock Exchange and ArcaEx, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.
About DDJ Capital Management LLC
DDJ Capital Management manages approximately $3 billion on behalf of 82 institutional clients. DDJ manages its clients' portfolios across four clearly defined investment strategies - Distressed Debt, Leveraged Loans, High Yield Bonds and a Special Situations Hedge Fund. These products are offered in limited partnership funds, separate accounts and commingled pools.
Deutsche Bank advised Highstar and Lane Berry advised DDJ.
Law firms were Paul Hastings, Janofsky & Walker acting on behalf of Highstar II and Goodwin Procter acting on behalf of DDJ Capital Management, LLC.
DDJ Capital Management LLC