FOR IMMEDIATE RELEASE CONTACT: Andrew McDonald
December 17, 2007 202-730-7338
Andrew.McDonald@seiu.org
Carlyle Group Sewer Sludge Business May Increase Health Risks to Communities
SEIU calls on Carlyle to disclose information about potential health hazards to environmental groups, local govts that
contract with Carlyle-owned Synagro Technologies
WASHINGTON, DC – People who live near the operations of a Carlyle Group sewer sludge business could be at an
increased health risk if Carlyle does not provide information to those communities about toxins and other hazards
associated with its business. Washington, DC-based Carlyle, a giant global buyout firm, owns Synagro Technologies,
a company that processes municipal waste products, transports the resulting “sewer sludge,” and distributes it for
land application. Residents living near sites where sewer sludge has been applied have reported significant health
complaints that they associate with the sludge application.
By taking Synagro private in an April 2007 leveraged buyout worth $772 million, Carlyle is able to avoid requirements
that Synagro provide to the public, shareholders, and federal agencies such as the SEC certain information about its
business practices. As a result of the buyout, Synagro may no longer be required to disclose publicly the existence of
regulatory inquiries or legal complaints against the company resulting from health hazards caused by Synagro
products and product distribution. Private equity buyout firms such as the Carlyle Group are not required to publicly
disclose information about the business practices of the companies they own.
Anything sent to a sewer can potentially end up in sludge, including human waste, fertilizer run-off, chemical run-off,
or discharges from hospitals or manufacturing plants. According to the EPA, sewer sludge, also known as “biosolids”
is “the solid, semi-solid, or liquid residue generated during the treatment of domestic sewage.” Indeed, the National
Research Counsel has stated that “[t]oxic chemicals, infectious organisms, and endotoxins or cellular material may all
be present in biosolids.”
“The Carlyle Group should come clean about its Synagro sewer sludge,” said Stephen Lerner, Director of the SEIU
Private Equity Project. “People have a right to know about the products being produced and distributed in their
neighborhoods, especially when those products may contribute to health hazards. Despite these health risks, the
Carlyle Group seems to be allergic to the principles of transparency and disclosure. Carlyle should commit to full
transparency about Synagro’s environmental impact.”
To highlight the health risks that could go undetected if Carlyle refuses to disclose information about its sewer sludge
business, SEIU held a demonstration today outside Carlyle’s Washington DC offices with demonstrators dressed in
hazmat suits. This week SEIU began contacting environmental groups, and state and municipal governments that
contract with Synagro to raise concerns about Carlyle’s lack of transparency and to encourage these groups to join
the call for Carlyle to disclose potential risks of its sewer sludge business.
The focus on Carlyle’s sewer sludge business is part of a larger national effort by SEIU to hold Carlyle accountable for
the impact of its actions on taxpayers, workers, and communities. More information is available at www.CarlyleExposed.
org
Sewer sludge produced by the Carlyle Group’s Synagro Technologies has been accused of causing serious health
problems. According to news reports, several individuals filed suit against a Synagro subsidiary in 2006 alleging that
soon after applications of Synagro products on a neighboring property, they started suffering from running noses,
burning eyes, even pneumonia and lung scarring.
Affected municipalities also are exploring their options to address concerns about Synagro products; among the
strategies they are considering are lawsuits, injunctions, studies of government leases with the company, and city
ordinances. In other cases, residents have had to try to deal with the problem themselves; one school located near a
Synagro facility produced calendars for parents to track especially noxious days and report them to city government
officials.
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