Dallas-based buyout house CenterOak Partners has completed a majority recapitalisation of water and wastewater infrastructure services business HK Solutions.
The company provides inspection, cleaning and repair services as well as industrial services and wastewater treatment to customers predominantly in Midwestern US states.
CenterOak CEO and managing partner Randall Fojtasek said, “We were attracted to the company after developing an investment thesis around the need to cost effectively repair or replace aging or failing water and wastewater infrastructure.
“Sustaining this significant core infrastructure is mission critical for our communities and for the environment.
“HK Solutions has an impressive operating track record in this large, growing, and important sector.”
CenterOak managing partner Jason Sutherland added that the deal represented “an attractive opportunity to partner with a regional market leader providing non-discretionary services in a fragmented sector”.
Earlier this year CenterOak struck a $690m hard cap close for its second fund following strong performance from its debut vehicle.
AltAssets reported in January that its $420m Fund I had returned more capital to investors than the firm had called from the vehicle, following the exit of HVAC and plumbing services company Service Champions to Odyssey Investment Partners.
CenterOak had been seeking $575m for CenterOak Equity Fund II, which will continue its strategy of targeting mid-market companies in the business services, industrial growth and consumer sectors across the US.
It looks to make investments in companies with enterprise values of between $50m and $500m, with EBITDA of up to $35m.
Copyright © 2021 AltAssets
PlatoAi. Web3 Reimagined. Data Intelligence Amplified.
Click here to access.
