Levine Leichtman Capital Partners (LLCP) has acquired USA Water from Warren Equity Partners.
USA Water is a provider of non-discretionary operations and maintenance (O&M) services for water and wastewater systems across the Southeast United States. The company was formed by Warren Equity in October 2020 as a platform to acquire operations and maintenance service providers, and small and medium-sized water and wastewater utilities. USA Water is led by CEO Jeff Haley and is headquartered near Houston in Rosenberg, Texas.
“I am thrilled that USA Water is joining forces with LLCP as we embark on our next chapter of growth,” said Mr. Haley. “LLCP has an established track record as an excellent partner to management teams, and we are eager to leverage their deep industry knowledge and operational expertise in order to deliver more value to our customers through our essential services.”
During Warren’s ownership term the company acquired two businesses including the October 2020 buy of Si Environmental, a Texas-based provider of operations and maintenance services including repair, procurement, installation, metering, builder services, inspections, and customer service/billing to water and wastewater utility systems.
“We are delighted to partner with USA Water, one of the leading O&M providers of water infrastructure services,” said Matthew Rich, a partner at LLCP. “USA Water has built a stellar reputation due to its ‘customer first’ culture and best-in-class service capabilities, which have driven an incredibly loyal client base and a long-term track record of consistent growth. We are excited to work with Jeff and the USA Water team to broaden the company’s service capabilities and geographic footprint through both organic initiatives and strategic acquisitions.”
LLCP invests in US and Europe-based middle-market companies across numerous industries including franchising, business services, education, engineered products, healthcare, and light manufacturing. Since its founding in 1984 by Arthur Levine and Lauren Leichtman, LLCP has managed $14.2 billion of institutional capital across 15 investment funds and has invested in over 100 portfolio companies. LLCP currently has $9.3 billion of assets under management with offices in Los Angeles, New York, Chicago, Charlotte, Miami, London, Stockholm, The Hague and Frankfurt.
Warren Equity invests from $5 million to $40 million in North American-based companies that have from $3 million to $15 million of EBITDA and total enterprise value of less than $150 million. Sectors of interest include industrial, infrastructure, and business services. In April 2023, Warren Equity held an above target, hard cap, and oversubscribed final closing of its latest fund, Warren Equity Partners Fund IV LP, with more than $1.4 billion in capital. Warren Equity was founded in mid-2015 by Steven Wacaster, Scott Bruckmann, and Henrik Dahlback and is headquartered in Jacksonville Beach, Florida.
Harris Williams was the financial advisor to USA Water on this transaction.
© 2024 Private Equity Professional | February 23, 2024
