SK Capital acquires Milestone Environmental Services

SK Capital Partners, a New York-based private investment firm focused on the specialty materials, ingredients and life sciences sectors, reports its affiliates have completed the acquisition of Milestone Environmental Services LLC, a Houston-based environmental services and carbon management company, from Amberjack Capital Partners.

SK Capital has taken a controlling stake in Milestone in partnership with President and CEO Gabriel Rio, who will continue to serve in the role and retain significant ownership in the company. Rio founded Milestone in 2014 and, alongside a strong management team and dedicated employee base, the company has become one of the largest independent providers of waste management services and an emerging leader in permanent carbon sequestration.

Milestone operates an integrated network of waste management infrastructure that helps “reduce … customers’ carbon impact by permanently sequestering hydrocarbon-containing energy waste, preventing greenhouse gas emissions and water and ground contamination,” according to the company. Since 2014, Milestone has sequestered more than 2 million tons of CO2e (carbon dioxide equivalent) through its proprietary slurry injection process.

In addition to expanding its leadership in existing markets, SK Capital says Milestone has the strategy, capabilities and operating track record to play a major role in the rapidly growing carbon capture and sequestration (CCS) market. Leveraging its core competencies in waste sequestration, complex permitting and regulatory compliance, subsurface rights leasing and geology analysis, Milestone’s CCS subsidiary, Milestone Carbon, is focused on enabling a broad range of industrial CO2 emitters to meet their decarbonization goals by developing and operating injection sites that permanently and securely sequester CO2.

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Milestone Carbon has several CCS projects under development and recently announced significant progress in its Midland Basin project.

“We are highly impressed with the market-leading, sustainability-driven business that Gabriel and the Milestone management team have built. It is well-positioned to further grow its core business in difficult-to-abate industries as environmental regulations become more stringent and Milestone’s customers are increasingly focused on meeting ambitious decarbonization targets,” says Jack Norris, a managing director at SK Capital. “We are excited to partner with management to capture this growth opportunity as well as support its further progress towards becoming a leader in CCS and other related markets.”

Rio adds that SK Capital’s industry and operating expertise, as well as its track record of successfully partnering with management teams to execute transformational strategies, make it an ideal partner for Milestone.

“We founded Milestone to boldly advance sustainability in the energy industry and beyond,” he says. “Our offerings enable companies to reduce their carbon footprint and enhance their ability to meet sustainability goals. Permanent, safe sequestration of carbon is an essential part of combating climate change, and Milestone has the strategy and capabilities to play a leading role in delivering solutions to multiple industries.”

Latham & Watkins LLP, Los Angeles, acted as legal counsel and Houlihan Lokey, also based in Los Angeles, served as financial advisor to SK Capital. Committed debt financing was provided by Cerberus Business Finance LLC. Goldman, Sachs & Co. and White & Case acted as financial advisor and legal counsel, respectively, to Milestone.