Houston-Synagro Technologies Inc., which recycles biosolids and other organic residuals in the U.S., and New York-based private investment giant The Carlyle Group, recently announced that Carlyle would be acquiring Synagro for $772 million, including $310 million in debt. The purchase represents $5.76 per share, which was a 28.6 percent premium on the stock price prior to the announcement. The deal is expected to close in the second quarter, after which Synagro’s stock will be delisted from Nasdaq and it will become a wholly-owned unit of Carlyle. Synagro says it is the only national company focused exclusively on the estimated $8 billion organic residuals industry. Synagro reports that it serves 600 municipal and industrial water and wastewater treatment accounts with operations in 37 states and the District of Columbia. Carlyle is also an investor in Magellan Midstream LP, which among other assets owns the former Mapco ammonia pipeline. Carlyle said Synagro is a strong, stable company in a market that has displayed consistent growth over time. It said it is an excellent, long-term investment and that it looks forward to existing management continuing with the company. Synagro recently announced net income to applicable common stock of $8 million ($.10 per share) on sales of $345.8 million for the year ending Dec. 31, 2006, up from a 2005 loss of $19.2 million ($.40 per share) on sales of $338.0 million.
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