water treatment

Edgewater and JZ Sell Water Treatment Division

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Triwater Holdings, a portfolio company of The Edgewater Funds and JZ Partners, has sold its subsidiary, TWH Water Treatment Industries (Water Treatment Solutions), to DuBois Chemicals, a portfolio company of The Jordan Company.

Water Treatment Solutions is a provider of managed water treatment programs for national, regional and local customers across a range of end markets. The company’s chemical-based treatment programs prevent scale formation on heat exchange surfaces, minimizes other surface deposits and inhibits corrosion. These programs protect assets, reduce energy/water usage and improve asset efficiency and longevity. The company’s programs are sold under the Nashville Chemical, Klenzoid Canada, Eldon Water and Chemco Products brand names. Water Treatment Solutions is headquartered in Rosemont, IL.

Triwater’s Water Treatment Solutions division began in 2012 with the acquisition of Nashville Chemical (www.nashchem.com). During its ownership term, Triwater and company management completed three add-on acquisitions and expanded the company’s facilities in both the US and Canada.

“The established management team at Water Treatment Solutions did an outstanding job of bringing together beneficial support and results for their customers. DuBois is an excellent fit for this business platform, and customers will continue to benefit from this merger,” said Larry Quick, CEO of Triwater.

“Edgewater thoroughly enjoyed working with Triwater and company management in building a tremendous water treatment organization,” said Edgewater Partner David Tolmie. “We are confident that Water Treatment Solutions is well positioned to continue its growth in partnership with the DuBois platform.”

DuBois Chemicals, a portfolio company of The Jordan Company since March 2017, is a provider of customized specialty chemical solutions used in a variety of applications such as metal finishing and paint pretreatment; metalworking and lubricants; water and wastewater treatment; maintenance and equipment cleaning; paper chemicals; food processing cleaning and sanitizing; and transportation cleaning. The company is led by Jeff Welsh, President and CEO. DuBois is headquartered north of Cincinnati in Sharonville, OH (www.duboischemicals.com).

This is the second divisional sale for Triwater (www.TriwaterHoldings.com) this year, with their Filtration Division having been acquired by Culligan International in March 2018. Triwater’s remaining division is Waterline Renewal Technologies (WRT), a provider of trenchless rehabilitation products for degraded potable water and sewer pipes, manholes and storm sewers.

“As a leader in the trenchless pipe rehabilitation industry, WRT is well positioned to provide solutions to the growing wastewater infrastructure problems through our best-in-class brands,” said Matt Fishbune, EVP of Triwater and President of WRT. “We have structured our organization to accelerate growth through our multiple channels to market and technology offerings for our valued customers, as we strive to continue improving water-use integrity by rehabilitating degraded infrastructure for the end users.”

The Edgewater Funds invests in companies with revenues from $20 million to $500 million and EBITDAs from $5 million to $30 million. Sectors of interest include business services, financial and government services, consumer products and services, healthcare services, IT services and software and basic industries. The firm has $2.7 billion in committed capital and is based in Chicago (www.edgewaterfunds.com).

JZ Partners invests in US and Canadian-based companies that have up to $200 million in enterprise value.  Sectors of interest include niche manufacturing; value-added distribution; industrial services; healthcare; education; transportation and logistics; and business services. The firm was founded in 1986 by Jay Jordan and David Zalaznick and has offices in New York and Chicago (www.jzpartners.com).

The Jordan Company is a middle-market private equity firm with over $6 billion of assets under management.  The firm was founded in 1982 and is headquartered in New York with an additional office in Chicago (www.thejordancompany.com).

Baird (www.rwbaird.com) served as the financial advisor to Water Treatment Industries on this transaction.

© 2018 Private Equity Professional | October 17, 2018

HKW Sells ProAct to Evoqua

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Publicly-traded Evoqua Water Technologies has acquired ProAct Services from Hammond, Kennedy, Whitney & Company (HKW) for $132 million. ProAct Services was acquired by HKW in October 2014.

ProAct provides air and water treatment services including on-site water treatment, industrial degassing and vapor control, environmental remediation, suspended solids removal, metal treatment, and carbon servicing. The company, led by CEO Gerard Smiddy, was founded in 1994 and is headquartered in Ludington, MI with facilities in California, Florida, Michigan, Minnesota, New Jersey, Virginia and Texas (www.proact-usa.com).

With this transaction now closed, ProAct Services has become a separate division within Evoqua’s Industrial Segment and will continue to be based in Ludington.

ProAct was acquired by HKW in October 2014. During the term of ownership, the company completed four add-on acquisitions, expanded its geographic reach and increased its service offerings. The four add-on acquisitions were the August 2017 buy of Kingwood, TX-based ThermTech, a maker of thermal and catalytic oxidizers; the February 2017 buy of the internal combustion engine degassing equipment of Groundwater & Environmental Services; the April 2016 buy of the Long Beach, CA division of FSI Field Specialties, a provider of degassing products and services; and the December 2015 buy of Carbonair, a Minneapolis-based provider of water treatment equipment and systems.

For the twelve months ended, March 31, 2018, ProAct had revenues of $54 million and adjusted EBITDA of $12 million. With a purchase price of $132 million, this equates to a valuation multiple of 11x adjusted EBITDA.

Evoqua (NYSE: AQUA) is a provider of water and wastewater treatment products, systems and services to industrial and municipal customers. Evoqua operates 160 locations in eight countries and has more than 38,000 customers worldwide. The company was founded as US Filter in 1990 and was acquired by Siemens in 2004 and renamed Siemens Water Technologies. Private equity firm AEA Investors acquired the business from Siemens in January 2014 and renamed the company Evoqua Water Technologies. In November 2017, AEA took the company public. Evoqua is headquartered in Pittsburgh (www.evoqua.com).

Hammond, Kennedy, Whitney & Company invests in companies with revenues between $20 million and $200 million and EBITDAs between $2 million and $20 million. Since 1982, HKW has completed 57 platform management buyouts of small middle-market companies throughout North America as well as 62 add-on acquisitions. The firm was founded in 1903 and is headquartered in Indianapolis with an additional office in New York (www.hkwinc.com).

Raymond James & Associates (www.raymondjames.com) was the financial advisor to ProAct.

© 2018 Private Equity Professional | July 30, 2018

Altus Closes Sale of Aqua-Chem

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Altus Capital Partners has sold Aqua-Chem, a maker of water purification products, to Crimson Investment.  Aqua-Chem was acquired by Altus and Aqua-Chem’s management in March 2006 from The Cleaver-Brooks Company.

Aqua-Chem manufactures and provides water purification and heat transfer products and services to the military, pharmaceutical, energy, military and bottled water industries.  The company was founded in 1929 and is headquartered in Knoxville, TN (www.aqua-chem.com).

During the term of its ownership, Altus expanded the operations of Aqua-Chem into other industrial markets that require high quality water services.  As part of this market expansion, Aqua-Chem launched more than a dozen new products, including large vapor compression systems, reverse-osmosis water purifiers, pretreatment and sanitary process distribution systems, waste heat plate type evaporators, vacuum vapor compression units and titanium and copper-nickel heat exchangers.

“Aqua-Chem is a prime example of excellence and determination in creating a diversified global company,” said Russell Greenberg, Managing Partner at Altus and former Chairman of Aqua-Chem.  “We want to thank David Gensterblum, the management team and the employees who have worked hard over the past eight years in order to make Aqua-Chem a leader in its markets.”

Altus Capital Partners invests in corporate divestitures, management-led buyouts, and privately held or family-owned businesses with manufacturing operations based primarily in the Midwest and Eastern regions of the United States. Target companies will have at least $5 million of EBITDA and an enterprise value from $30 million to $100 million. The firm is headquartered in Wilton, CT with an additional office near Chicago in Lincolnshire, IL (www.altuscapitalpartners.com).

Crimson invests in middle market companies across a range of industry sectors.  Areas of particular interest include: manufacturing (energy, medical, agriculture & food, safety & testing, pollution control and branded consumer products); components (pumps, valves, fuel systems, engineered plastics, and electronics); and services (food service, restaurants, safety testing, healthcare and education). The firm is based in Brisbane, CA (www.crimsoninvestment.com).

BB&T Capital Markets represented the shareholders of Aqua-Chem on this transaction.  The firm provides capital and advisory services including research, sales and trading, equity and debt underwriting, M&A advisory and corporate banking.  BB&T is one of the largest financial services holding companies in the US with $182.7 billion in assets and a market capitalization of $23.8 billion, as of June 30, 2013. BB&T is based in Winston-Salem, NC (www.bbtcapitalmarkets.com).

AEA Investors Acquires Siemens Water Technologies

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AEA Investors has closed on the acquisition of the water and wastewater treatment operations and assets of Siemens Water Technologies for €640 million or $870 million. Upon closing of the transaction the company was renamed Evoqua Water Technologies. Existing management of the company including Dr. Lukas Loeffler, CEO, will continue to run the business.

Evoqua Water Technologies is a provider of water and wastewater treatment products, systems and services for industrial and municipal customers. The company was founded as US Filter in 1990 and was acquired by Siemens in 2004. Evoqua Water Technologies is headquartered in Alpharetta, GA (www.water.siemens.com).

“AEA Investors is pleased to complete this acquisition and move forward with management to execute its plan to grow the business and maximize the potential of this industry leader,” said AEA Partner Brian Hoesterey.

AEA manages approximately $6 billion of invested and committed capital in funds dedicated to three purposes: buyouts of middle market companies operating in the industrial, specialty chemical, consumer products and consumer services sectors; buyouts of smaller middle market companies in these same sectors; and mezzanine and senior debt investments. AEA was founded in 1968 and is based in New York with offices in London, Munich, Hong Kong, and Shanghai (www.aeainvestors.com).

“AEA’s primary professionals interfacing with us have years of water, specialty chemicals and industrial experience,” said Dr. Loeffler. “Combined with our expertise, proven legacy brands and advanced water and wastewater treatment technologies, the company is well-positioned for its next evolution to helping our customers achieve success.”

© 2014 PEPD • Private Equity’s Leading News Magazine • 1-16-14

Mason Wells Acquires Aquion from Ares

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Ares Capital Corporation has sold its portfolio company Aquion, a water treatment equipment company, to Mason Wells.

Aquion is a manufacturer and marketer of water treatment equipment with three operating divisions, RainSoft, Erie Water Treatment Controls, and ClearWater Tech. Products include water conditioners, iron filters, carbon filters, drinking-water purifiers, ozone and ultraviolet disinfection systems, reverse osmosis systems and acid neutralizers for the residential and commercial water treatment industry. Aquion’s water treatment systems are sold through multiple distribution channels. The company also has a network of more than 100 independent dealers who sell water conditioners, whole house filters, drinking water systems, and air treatment systems directly to consumers. The company has a 160,000 sq. ft manufacturing facility located in Elk Grove Village, IL. Aquion’s Clear Water Tech division has manufacturing operations in San Luis Obispo, CA and the Erie Water Treatment Controls division has manufacturing operations in Olen, Belgium. Aquion was founded in 1953 and is headquartered near Chicago in Elk Grove Village, IL (www.aquion.com).

Mason Wells makes investments in Midwest-based companies with revenues of $25 million to $300 million and EBITDAs of at least $5 million. Sectors of interest include consumer packaged goods, packaging materials & converting, engineered products & services and outsourced business services. The firm was founded in 1982 and is based in Milwaukee (www.masonwells.com).

Metronome Partners, a mid-market investment bank with offices in Chicago and Memphis (www.metronomepartners.com), was the exclusive financial advisor to Ares Capital Corporation on its sale of Aquion. Metronome worked with Ares and Aquion’s senior management team to prepare marketing documents, compile diligence materials, approach potential acquirers, facilitate buyer meetings, and evaluate and negotiate transaction terms.

“Metronome was tireless in their efforts and worked diligently on our behalf from start to finish. They did a terrific job finding us the best buyer and managing every step of the process,” said Michael Dieber, Managing Director and Co-Head of Ares Capital Management’s Portfolio Management Group.

Ares Capital provides debt and equity to the US middle-market companies primarily in first- and second-lien loans and mezzanine debt, which in some cases includes an equity component. The firm has offices in Los Angeles, Chicago, New York, Atlanta, Menlo Park and Washington, DC (www.arescapitalcorp.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 1-10-14