Private Equity Firm Juniper Capital Management Creates New Investment Platform, Closes Deals Two and Three
(April 6, 2018)
Dallas – Juniper Capital Management (“Juniper”) recently created a new investment platform, Infrastructure Services Group (“ISG”), in partnership with ORIX Mezzanine & Private Equity, LionsWing Capital Partners LLC (“LionsWing LLC”) and company management, to conduct strategic acquisitions in the water infrastructure sector.
ISG just closed its first two deals, acquiring Vermont-based Green Mountain Pipeline Services (“Green Mountain”) and Pennsylvania-based Mr. Rehab Sewer Systems (“Mr. Rehab”), both of which are engaged in the rehabilitation of municipal sewer systems in the U.S. Northeast. The companies provide a broad range of cured-in-place rehabilitation services to municipal and industrial customers, including inspection, cleaning, rehabilitation, spot repair, relining, testing and sealing services for wastewater pipes and manholes.
These two acquisitions are the second and third deals concluded by Juniper since the firm’s inception. In July 2017, Juniper made a growth capital investment in Washougal, Washington-based Ballard Marine Construction, LLC. Juniper is a Dallas-based private equity firm that seeks to execute control investments in growth-oriented companies within the manufacturing, industrial products and services, and infrastructure services sectors.
“We are delighted to team up with this investor group to create a platform for strategic water infrastructure investments, and to have Green Mountain and Mr. Rehab as our first completed deals under this platform,” said Lou Grabowsky, Juniper’s co-founding partner. “Both companies have dynamic leadership teams and have positioned themselves well within the wastewater rehabilitation sector. With ISG’s guidance, and the continued involvement of company management, these companies are poised for strong growth over the coming years.”
The newly created investment platform is led by water infrastructure industry veteran Tom Barr, the founder of LionsWing LLC, who serves as CEO of ISG. Green Mountain and Mr. Rehab will continue operating as standalone subsidiaries, with ISG providing strategic guidance, oversight and support to foster both organic and acquisitive growth.
“The ISG team is pleased not only to have made these initial acquisitions, but also to continue pursuing a focused strategy of evaluating and acquiring complementary companies with similar service offerings in key U.S. regional markets – and helping them grow to meet the tremendous industry-wide demand,” said Barr. “There are significant opportunities to achieve operational efficiencies and adopt shared best practices, leveraging the expertise and experience of these well-led, financially strong firms that employ the latest in trenchless technology solutions.”
Green Mountain, based in Bethel, Vermont, was founded in 2003 by three industry professionals with over 60 combined years focused on the rehabilitation of water infrastructure assets. Tim Vivian, co-founder of the company, will serve as president of Green Mountain.
“Green Mountain prides itself on getting the job done right the first time, with a core focus on service and long-term partnerships,” said Vivian. “That is why the deal with Juniper and its ISG team made so much sense, as they share a similar philosophy of offering practical support while also respecting management’s existing client and vendor relationships and industry know-how. We believe their patient, people-first approach will benefit us and our customers tremendously.”
Mr. Rehab, based in Mechanicsburg, Pennsylvania, was founded in 2000, with an executive management team offering decades of experience in sewer cleaning, inspection and rehabilitation services. Jim Clark, company founder, will serve as president of Mr. Rehab.
“This partnership with Juniper and ISG will help us maintain and reinforce our regional brand and historic relationships, while also giving us insights and tools to grow smartly and even better serve our customers,” said Clark. “We are glad to be part of a group that has significant, hands-on experience within the water infrastructure services industry and the desire to empower company management.”
According to the American Water Works Association, the aging water infrastructure systems in the U.S. have been underfunded for many years and will require a huge investment over the next 25 years, of at least $1 trillion, simply to maintain current water service levels. Currently, the U.S. has approximately 1.6 million miles of water and wastewater pipelines, with a major water main breaking every two minutes and 2 trillion gallons of treated water lost every year at a cost of $2.6 billion. The U.S. also has approximately 800,000 miles of sewer mains, through which 900 billion gallons of untreated sewage is discharged every year. Without renewal or replacement of existing systems, it is estimated that 44 percent of pipes will be classified as poor, very poor or life elapsed by 2020, as compared to 23 percent in 2000 and 10 percent in 1980.