One Equity Partners and Warburg Pincus have formed Eco Material Technologies to acquire three businesses – Boral Resources, the North American fly ash business of publicly traded Boral Limited, and Green Cement.
With the transaction closed, Eco Material is now the leading marketer and distributor of fly ash, with an approximately 50% market share in the United States and a national footprint of logistics networks and distribution channels. Fly ash is the fine ash produced at coal-fired power plants that develops cementitious properties when mixed with cement and water. Fly ash in concrete is widely used across the U.S. to strengthen concrete. Eco Material has more than 4,000 customers that are serviced from its more than 100 sites located across 45 states.
Eco Material uses patented technology to convert fly ash and other materials into near-zero carbon building materials that are approximately 20% stronger than traditional cement. This technology reduces by approximately 99% the CO2 emissions that are associated with cement production. Other services of Eco Material include operations support, waste disposal, and environmental remediation. Eco Material, led by CEO Grant Quasha with more than 1,100 employees, has operations near Salt Lake in South Jordan, Utah, and near Houston in The Woodlands, Texas.
“Eco Material is truly the best of both worlds, combining the largest network of cement alternatives in the U.S. with an innovative, proven technology that increases their environmental and economic value,” said Mr. Quasha.
As part of the formation of Eco Material and the three acquisitions, the company priced and closed $525 million of Green Bonds at 7.875% that are due in 2027. Green Bonds are debt instruments with similar characteristics to traditional bonds, which issuers use to implement and finance their environmental, social and governance (ESG) strategies.
“We’re very proud to make this investment and form Eco Material,” said Matt Hughes, a managing director at OEP. “Bringing together Green Cement and Boral creates immediate synergies, positions the company to take advantage of new growth opportunities, and will enable it to have an even greater positive environmental impact by repurposing harmful waste into carbon-reducing products.”
“Fly ash represents one of the largest streams of industrial waste in the country, creating the unique opportunity for Eco Material to simultaneously solve a serious environmental challenge for utilities while lowering the carbon footprint of high-emitting industries like cement,” said Roy Ben-Dor, a managing director at Warburg Pincus.
New York City-headquartered Warburg Pincus has more than $64 billion in assets under management and has raised 20 private equity funds since its founding in 1966.
OEP is a middle-market private equity firm focused on the industrial, healthcare, and technology sectors in North America and Europe. OEP spun out of JP Morgan in 2015 and has closed more than 300 transactions worldwide since its founding in 2001. The firm has offices in New York, Chicago, Frankfurt and Amsterdam.
© 2022 Private Equity Professional | February 15, 2022
