Groome Industrial Service Group, a portfolio company of Argosy Private Equity, has acquired Blasting Solutions.
Blasting Solutions (BSI) uses controlled explosives to deslag boilers that use coal, wood, or fuel oil. The company, headquartered near Salt Lake City in Syracuse, Utah, operates in 20 states with offices in California, Arizona, North Dakota, Florida, Montana, and Georgia.
Deslagging is the process of removing slag and other impurities that accumulate on the interior surfaces of a boiler. When the boiler’s fuel is burned, it produces byproducts including ash, soot, and other solid particles which accumulate on the walls of the boiler and form a layer of slag, which can reduce the efficiency of the boiler and increase the risk of equipment failure or fires.
Controlled explosive deslagging (CED) involves strategically placing small explosive charges in the areas of the boiler where slag buildup is the most severe. The charges are then detonated in a controlled manner, creating a shockwave that dislodges the slag from the walls and other surfaces. The explosive charges used in CED are carefully calibrated to ensure that they generate enough force to remove the slag without causing damage to the underlying structure or equipment. CED is typically used in cases where conventional deslagging methods, such as manual scraping or brushing, are not effective or practical.
Groome Industrial is a provider of industrial cleaning and maintenance services to customers that use natural gas-fired, coal-fired, and biomass-fired power generation; and in the refinery, manufacturing, construction, marine, and aviation industries.
Groome’s KinetiClean service uses an explosive-generated shockwave to remove slag from heat recovery steam generators (HRSG). After the blast, the slag is removed using oscillating air tools and a vacuum truck collects the slag to complete the cleaning process. Groome, led by CEO Jeff Bause, is headquartered 25 miles west of New York City in Fairfield, New Jersey.
“We are excited for BSI to join the Groome team to help support the increased demand we have experienced for our KinetiClean service for gas turbine HRSG tube cleaning over the past year,” said Mr. Bause. “Additionally, BSI’s presence on the west coast will help add to our depth of resources and customer service in the region.”
“We are thrilled about the combination of Groome and BSI,” said Keven Shanahan, a partner at Argosy. “We believe BSI’s focus on research and development, and its experienced professionals differentiate it in the niche market of the explosive industry, and will complement Groome’s continued focus on safety, efficiency, and innovation.”
Groome was acquired by Argosy in September 2019 through its fifth fund, Argosy Investment Partners V LP, which closed in April 2015 at its hard cap of $300 million.
Argosy makes control investments of $5 million to $25 million in niche manufacturing and business-to-business service companies with $20 million to $100 million of revenue and $3 million to $10 million of EBITDA. In July 2022, Argosy held a final and above-target closing of Argosy Investment Partners VI LP with $422 million in capital.
Headquartered near Philadelphia in Wayne, Pennsylvania, Argosy Private Equity was founded in 1990 and is a division of Argosy Capital, an investment adviser with $2.7 billion of assets under management. Other investment units of Argosy include Argosy Real Estate Partners, Argosy Credit Partners, Argosy Strategic Partners and Argosy Healthcare Partners. All Argosy’s funds focus on lower middle-market investment strategies.
© 2023 Private Equity Professional | April 5, 2023
