Warren Equity Partners (“Warren Equity”), a lower middle market private equity fund, is pleased to announce the formation of USA Water Holdings, LLC (“USA Water”) and the acquisition of Si Environmental, LLC (“Si Environmental” or “SIE”) (together with USA Water, the “Company”). USA Water, based in Houston, TX, was formed by Warren Equity in partnership with a team of industry executives to create a water and wastewater platform for acquisitions across two separate but complementary verticals: Operations and Maintenance (“O&M”) service providers and small and medium-sized water and wastewater utilities. Warren Equity, in conjunction with USA Water, purchased Si Environmental as the first acquisition in this buy-and-build strategy. Financial terms of the transactions were not disclosed.
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USA Water intends to expand its platform through acquisition and integration of water and wastewater utilities and O&M service providers. The USA Water team consists of industry executives with extensive experience in utilities, project development, M&A, technology, and operational improvement, and is led by Rich Roth (Chairman) and Sohail Alyasin (President and CEO). Rich Roth previously served as Chairman and CEO of SJW Group (NYSE:SJW), one of the largest publicly-traded water utilities in the U.S., where he was the principal architect of acquisition and operational integration of numerous small to medium-sized water systems. Sohail Alyasin has spent his career in utilities, power and water infrastructure development, and has advised on numerous water and wastewater utility acquisitions.
“We are pleased to announce our new partnership with Warren Equity and Si Environmental. We have followed SIE and its impressive growth trajectory for some time, and we are eager to embark on this next chapter of growth,” said Rich Roth, Chairman of USA Water. “We have been impressed by SIE’s ‘customer first’ culture and demonstrated track record of great customer service, safety and reliability,” added Sohail Alyasin, President and CEO of USA Water. “We believe the Company is well positioned to continue SIE’s strong growth trajectory both organically and through additional M&A, bringing SIE’s deep commitment to public health and safety, and the benefits of consolidation, economies of scale, and operational resiliency to small and medium-sized water systems in existing and new markets. We have great appreciation for the professionalism and dedication of SIE’s talented workforce and the traditions rooted in the company’s founding, notably that of the ‘family company’ culture focused on the customer and providing best-in-class service.”
Si Environmental, based in Rosenberg, TX, provides O&M services for water and wastewater utility districts in metropolitan Houston and surrounding areas. SIE is led by Jeff Haley, who has served as President for over seven years and has extensive industry experience. Mr. Haley will maintain a significant equity ownership in USA Water alongside Warren Equity and will continue to remain President of SIE. SIE will operate as a subsidiary of USA Water.
“We chose to partner with Warren Equity and USA Water because of their relevant industry expertise, experience in scaling similar types of businesses, and strong cultural fit,” said Jeff Haley, President of Si Environmental.
“We are excited to partner with the USA Water and SIE teams. We believe the water and wastewater markets remain highly fragmented, creating a significant consolidation opportunity in the O&M and water and wastewater utility segments,” said Billy McCormick, Vice President at Warren Equity.
About Warren Equity Partners
Warren Equity Partners is a private equity firm that invests in small and middle market operating companies primarily in North America. The firm invests in established companies where additional capital and operating resources can accelerate growth, targeting companies in the industrial services, industrial products, business services, and distribution sectors. Warren Equity invests in the form of buyouts, growth equity, and recapitalizations. For more information, please visit www.warrenequity.com.
About USA Water
USA Water was formed to pursue a buy and build strategy to develop a large water company via consolidation and operational integration of small to medium-sized water and wastewater utility systems. USA Water’s vision is to bring modernization and high quality water service to the fragmented landscape of thousands of small to medium-sized U.S. water and wastewater utilities.
About Si Environmental
Si Environmental, founded in 2012 and based in Rosenberg, TX, provides O&M services for water and wastewater utility districts in metropolitan Houston and surrounding areas. SIE provides O&M services to more than 80 utility districts. SIE’s O&M services including operations, maintenance, repair, procurement, installation, metering, builder services, inspections, and customer service/billing for water and wastewater utility systems. For more information, please visit www.sienv.com.