By Austin Business Journal

Austin-based Gatti's Pizza owner Blue Sage Capital LP sold off ownership in Controlled Recovery Inc. to an investor group forming a new environmental services company.

CRI, a New Mexico-based oil disposal company, will merge with two other companies as part of the deal, creating the consolidated entity R360 Environmental Solutions. The investor group led by Paine & Partners LLC affiliates and Tinicum Capital Partners LP purchased CRI, of which Blue Sage was majority shareholder, along with U.S. Liquids of Louisiana and the Calpet / R&G group of companies.

R360 will provide environmentally-conscious waste disposal, recycling and treatment to oil and gas producers. CRI CEO John Barnidge and President Gary Wallace joined the new company's executive team along with two others. A Paine & Partners adviser is serving as chairman R360's board.

Blue Sage maintains a smaller stake in CRI as an investor in R360. Founded by Peter Huff and Jim McBride, Blue Sage targets growth, recapitalization and buyout financing smaller middle-market companies based in Texas and the Southwest. Its portfolio includes Ashbrook Simon-Hartley Ltd., C&M Conveyor Inc., Environmental Design Inc., Fusion, Hoak Media Corp., MultiCam Inc., Omniflight Inc., Parker School Uniforms Inc., Primus Sterilizer Co. Inc. and VIA.

Paine & Partners provides equity capital thought its $1.2 billion fund. Officials plan to grow the R360 disposal company organically and through additionally acquisitions.

Copyright 2010 American City Business Journals
Copyright 2010