Blue Sage Buys Geo-Solutions from RAF

Blue Sage Capital has acquired Geo-Solutions, a provider of geotechnical and environmental remediation services, from RAF Industries.

Geo-Solutions’ services include slurry wall, trench and barrier construction; in-situ soil mixing and ground improvement; and dam grouting to remedy contaminated sites, leaky dams and levees, and soft ground conditions.

Customers of Geo-Solutions operate in the infrastructure, utilities, chemical, mining, and other industrial sectors. The company, led by CEO Darin Payne, was founded in 1979 and is headquartered near Pittsburgh in New Kensington, Pennsylvania. RAF Industries acquired Geo-Solutions in January 2013 from Pittsburgh-based 3 Rivers Capital.

“We are excited to enter the next chapter of the Geo-Solutions story alongside Blue Sage, a proven value-added investor in the environmental industry,” said Mr. Payne. “For decades, we have been a trusted resource for offering our specialized suite of services across a variety of geotechnical and environmental remediation applications. We are looking forward to leveraging the Blue Sage relationship to expand our geographic footprint, extend our service lines, pursue strategic acquisitions, and reinvest in our business.”

“Geo-Solutions has differentiated itself through its deep industry knowledge and ability to safely complete some of the industry’s most complex engagements,” said Peter Huff, a founding and managing partner of Blue Sage. “We could not be more excited to partner with Darin and the rest of the Geo-Solutions team, and we are eager to execute on our joint strategy for growth.”

Austin, Texas-based Blue Sage specializes in partnering with founders, families, and management teams as the first round of institutional capital for businesses in the niche manufacturing, environmental solutions, or specialty services industries. The firm typically invests from $20 million to $40 million in control buyout investments and recapitalizations of companies with $4 million to $15 million in EBITDA and $20 million to $200 million in revenue.

RAF Industries was founded by Robert Fox in 1979 and is a privately held investment company which owns and operates 16 manufacturing companies, all located in the United States.  The company is headquartered near Philadelphia in Bala Cynwyd, Pennsylvania.

FMI Capital Advisors was the financial advisor to Geo-Solutions on this transaction.

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