L2 Capital Partners has acquired Ecotone, a provider of eco-related design, engineering, and construction services.
Ecotone is a provider of ecological design and restoration services to federal, state, local and private companies located in the Mid-Atlantic. In addition to restoration services, the company also provides mitigation banking and stormwater management services. Mitigation banking is the preservation, enhancement, restoration or creation of a wetland, stream, or habitat conservation area to offset or compensate for adverse impacts to nearby ecosystems.
Since its founding in 1998 by CEO Scott McGill, Ecotone has restored more than 33 miles of streams and riverine environments, and 1,250 acres of wetlands and habitats. The company is headquartered in Forest Hill, Maryland and has more than 70 employees.
“For over 22 years, Ecotone has delivered the highest-quality ecological design and restoration services in the Mid-Atlantic region, primarily within the Chesapeake Bay watershed,” said Mr. McGill. “Ecotone’s philosophy of “Think Like a Mountain” embodies assessing the interconnectedness of our world’s flora, fauna, soils, water, and human life with a long-term view of environmental restoration. When I decided to seek out a capital partner, I was particularly interested in an organization that not only believed in the overall vision for the company but also showed a passion for helping Ecotone reach a new level of success. The team at L2 was truly differentiated in terms of their industry knowledge, creativity, and collegial approach, which highly resonated at all levels of our organization.”
“L2 has significant experience in the environmental services sector and is very excited to partner with Scott and the entire Ecotone team,” said Connor McMahan, a partner at L2 Capital. “The company’s capabilities solve some of our society’s most sensitive ecological problems, and the company’s core values strongly align with those of L2.”
In 2011, L2 Capital acquired LSC Environmental Products, a manufacturer of spray-applied coatings that are used to control and prevent the environmental challenges of erosion, odor, land reclamation, waste cover, seeding, and dust. L2 sold LSC to Ancor Capital Partners in 2019.
“Ecotone is well-positioned to continue its evolution as a leading environmental restoration services provider,” said Lorin Wolfe, a partner and the chief operating officer of L2 Capital. “L2 Capital’s depth of experience in the sector, its passion for environmental, social, and governance and positive purpose businesses, and its partnership-based approach will help the company achieve outsized levels of growth. I’m delighted to have the opportunity to work closely with the entire Ecotone team to advance their mission of being the most trusted brand in the space.”
L2 Capital Partners is a lower middle-market family office that makes control and minority investments in companies that have revenues from $10 million to $75 million and EBITDA from $2 million to $8 million. Sectors of interest include technology-enabled services; business services; e-commerce/direct marketing; consumer products; manufacturing; and environmental products. L2 was founded by Bob Levine in 2011 and is headquartered in the Philadelphia suburb of Devon, Pennsylvania.
© 2021 Private Equity Professional | July 9, 2021
