KLH Capital has acquired eTech Environmental & Safety Solutions in partnership with the company’s senior management team.
eTech provides its services – environmental consulting, soil sampling and testing, remediation, waste management, and compliance services – to blue-chip customers in the upstream, midstream, government, and industrial end markets throughout the Permian Basin, a sedimentary basin in western Texas and southeastern New Mexico that is rich in oil and natural gas deposits.
The company’s specific capabilities include soil and groundwater testing, asbestos, mold and lead consulting, and federal and state permitting assistance. eTech, led by CEO Shane Estep and COO Brandon Wilson, employs more than 125 environmental technicians and professionals and is headquartered in Odessa, Texas.
“I am excited for the opportunity that this partnership will provide for our employees and their families, our customers, and our niche industry,” said Mr. Estep. “We’re blessed to be growing quickly and have an incredible amount of growth opportunity at our fingertips and needed a financial partner who will assist eTech in harnessing our potential.”
“eTech is a classic example of a crew-based field services business model that KLH excels in growing and working with,” said James Darnell, a managing partner at KLH. “Beyond its core business model, what we love about eTech is the small dollar nature of its day-in, day-out job scope and the vast amount of organic revenue opportunities that exist. The company enjoys working alongside Class A customers and is beautifully positioned to continue to monetize opportunity and broaden its geographic footprint within a heavily regulated industry.”
In June 2023, Tampa, Florida-based KLH held an above target, oversubscribed, hard cap, and final closing of KLH Capital Fund V LP with $400 million of capital. As with its earlier funds, KLH’s new fund will make majority and minority investments in family- and founder-owned distribution, specialty services, and niche manufacturing companies that have EBITDA from $4 million to $20 million.
In partnership with KLH, eTech will now look to accelerate its growth and continue to expand its service offerings throughout the United States.
© 2023 Private Equity Professional | October 3, 2023