J.F. Lehman & Company (JFLCO), a middle-market private equity firm said that its investment affiliate JFL-NRC-SES Partners, LLC signed an agreement to sell its membership interests in NRC Group Holdings, LLC (NRC Group), formed earlier this year with the combination of JFLCO companies National Response Corporation (NRC) and Sprint Energy Services (Sprint) , to Hennessy Capital Acquisition Corp. III (HCAC). After the transaction is completed, NRC Group will be a wholly-owned direct subsidiary of HCAC, who will change its name to NRC Group Holdings Corp. NRC Group Holdings Corp. will apply to continue listing its common stock and warrants on the NYSE American under the proposed ticker symbols “NRCG” and “NRCG.WS,” respectively. Investment affiliates of JFLCO will continue to own a significant equity position in the public company as part of the transaction.
NRC Group is a provider of environmental, compliance and waste management services. The company’s range of capabilities enable it to provide global reach to meet the critical, non-discretionary needs of its customers across diverse industries and end markets to ensure compliance with environmental, health and safety laws around the world. Chris Swinbank, Chief Executive Officer of NRC Group, will continue to serve in that capacity post-closing.
Since the acquisition of NRC and Sprint by investment affiliates in 2012 and 2015, JFLCO has worked successfully with each company’s management team to revive their core businesses, expand geographically and grow their service portfolio. These organic growth initiatives were augmented by ten acquisitions which substantially increased NRC Group’s geographic footprint.
Closing of the transaction is expected to occur in Q3 2018.
Stifel and Houlihan Lokey Capital, Inc. served as financial advisors to JFLCO and Jones Day and Blank Rome LLP provided legal counsel.
