Key Takeaways
- • The Riverside Company has acquired Hoover Circular Solutions (Hoover CS), a reusable steel container rental provider, from First Reserve, according to the primary source; financial terms of the transaction were not disclosed in the source material.
- • Hoover CS serves approximately 850 customers across refining, petrochemical, industrial chemical, pharmaceutical, and food and beverage markets, with service centers in Texas, Louisiana, Alberta, the Netherlands, Bahrain and an office in Singapore.
- • The company's reusable steel IBCs carry a 40% to 90% lower global warming impact than comparable single-use containers, according to Hoover CS's own life-cycle analysis.
- • Global intermediate bulk container market is valued at roughly $15 billion to $15.3 billion, with projected annual growth of about 5.8% to 5.9%, per Grand View Research and Global Market Insights.
- • First Reserve held the business since December 2014 through its thirteenth fund, and under CEO Kevin Friar the company divested its IBC manufacturing ($24 million) and Ferguson offshore business ($130 million) in 2020.
Summary
The Riverside Company has acquired Hoover Circular Solutions (Hoover CS) from First Reserve. Hoover CS rents reusable steel containers used to move refinery catalysts and industrial chemicals. Its product lines include intermediate bulk containers (IBCs), intermodal ISO tanks, and specialized bins for fresh and spent refinery catalysts. The company operates through two businesses: Catalyst Packaging, which supplies containers and logistics for refinery catalysts including collection of spent materials, some containing precious metals, and Chemical Packaging, which rents IBCs and ISO tanks and provides cleaning, maintenance, testing and recertification through its service network. The company also offers fleet management using container tracking and its proprietary FleetAI software.
First Reserve acquired Hoover Container Solutions in December 2014 through its thirteenth fund. In October 2016 the business combined with Brambles-owned Ferguson Group and CHEP Catalyst & Chemical Containers to form Hoover Ferguson Group, a 50:50 joint venture. First Reserve acquired Brambles' stake in April 2018. Kevin Friar became CEO in 2019, and under his leadership the company sold its IBC manufacturing operations to Tank Holding for $24 million in March 2020 and its Ferguson offshore business to OEG Group for $130 million in November 2020. The company adopted the Hoover CS name in March 2021. It is headquartered in Katy, Texas, and traces its history to 1911.
According to the primary source, the reusable container segment is part of the global IBC market, which Grand View Research values at $15 billion, projecting $21 billion by 2030 at 5.8% annual growth, while Global Market Insights puts it at $15.3 billion with 5.9% annual growth through 2034. North America accounts for about 27.5% of the market. Growth drivers include safety regulation, cost pressures and a shift from drums and one-way packaging toward reusable containers.
Sean Ozbolt, managing partner at Riverside, said the firm was pleased to support the company's next phase of growth. Craig Kahler, partner at Riverside, said Hoover CS has built a specialized rental platform with long-standing customer relationships and a broad fleet across North America, Europe and the Middle East, and that Riverside will invest in its people, systems and facilities. Mr. Friar said his team has established the growth path that Riverside will help execute. Riverside, founded in 1988, has made more than 1,100 investments and has over 140 portfolio companies. Houlihan Lokey served as financial advisor to Hoover CS.
First Reserve acquired Hoover Container Solutions in December 2014 through its thirteenth fund. In October 2016 the business combined with Brambles-owned Ferguson Group and CHEP Catalyst & Chemical Containers to form Hoover Ferguson Group, a 50:50 joint venture. First Reserve acquired Brambles' stake in April 2018. Kevin Friar became CEO in 2019, and under his leadership the company sold its IBC manufacturing operations to Tank Holding for $24 million in March 2020 and its Ferguson offshore business to OEG Group for $130 million in November 2020. The company adopted the Hoover CS name in March 2021. It is headquartered in Katy, Texas, and traces its history to 1911.
According to the primary source, the reusable container segment is part of the global IBC market, which Grand View Research values at $15 billion, projecting $21 billion by 2030 at 5.8% annual growth, while Global Market Insights puts it at $15.3 billion with 5.9% annual growth through 2034. North America accounts for about 27.5% of the market. Growth drivers include safety regulation, cost pressures and a shift from drums and one-way packaging toward reusable containers.
Sean Ozbolt, managing partner at Riverside, said the firm was pleased to support the company's next phase of growth. Craig Kahler, partner at Riverside, said Hoover CS has built a specialized rental platform with long-standing customer relationships and a broad fleet across North America, Europe and the Middle East, and that Riverside will invest in its people, systems and facilities. Mr. Friar said his team has established the growth path that Riverside will help execute. Riverside, founded in 1988, has made more than 1,100 investments and has over 140 portfolio companies. Houlihan Lokey served as financial advisor to Hoover CS.
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