Sun Capital Partners has acquired Environmental Infrastructure Solutions (EIS), a provider of environmental abatement services, from O2 Investment Partners.
O2 formed EIS in October 2019 to house its investments in environmental abatement services companies 1 Priority Environmental Services (1PES) and Earth Services & Abatement (ESA), and to acquire Snyder Environmental, a Little Rock-based provider of asbestos abatement, mold remediation, dust control, and lead paint removal services in Arkansas, Oklahoma, and Tennessee.
O2 acquired 1PES, a Fort Worth-based provider of asbestos abatement, lead abatement, mold remediation, and biohazard decontamination, in May 2018 and merged it in February 2019 with ESA, a Denver-based provider of asbestos and lead abatement, water and soil remediation, and structural demolition services.
Other EIS add-on acquisitions include Florida-based Simpson Environmental in February 2020 and Maryland-based Potomac Abatement in February 2021.
“We are extremely pleased at the progress that EIS has made since we invested in 2018 and are confident that Sun Capital will bring the expertise and additional resources required to support the company’s impressive growth and delivery of world-class solutions,” said Luke Plumpton, a partner at O2.
Today, Fort worth-headquartered EIS, led by CEO Gary Caldwell, is one of the top five abatement firms in the US with over 750 employees and 24 offices across 14 states.
“It was critical for us to work with a partner that shares our goal of making the surroundings we work, live, and play in, safer and healthier for us and our future generations,” said Mr. Caldwell. “Sun Capital deeply understands and appreciates our mission and will provide the resources that will allow us to continue delivering tailored solutions to both longstanding and new customers in the best way possible.”
“We see a great opportunity to help EIS accelerate its growth, given the increasing demands of the regulatory environment and the historical underinvestment in infrastructure in the US,” said Jared Wien, a managing director at Sun Capital. “With more and more focus being applied to public health and safety, EIS is attractively positioned in the most important areas of a large and rapidly growing market, and we are eager to help them realize their full potential.”
O2 makes control investments in companies with enterprise values from $10 million to $100 million and EBITDA from $4 million to $15 million that are located anywhere in the US and Canada. Sectors of interest include business-to-business services, technology, and select niche industrial companies. In January 2021, O2 held a final closing of O2 Investment Partners Fund III LP with $270 million in capital commitments. O2 is based in the Detroit suburb of Bloomfield Hills and was founded in 2010.
“We look forward to working closely with the EIS team to build on their success, applying our deep industrial sector knowledge to help them accelerate growth and capitalize on new market opportunities,” added Marc Leder, the co-chief executive officer of Sun Capital. “EIS has built itself into an industry leader in environmental services, which has continued to grow in importance as organizations increase their focus on ESG.”
Sun Capital invests in leveraged buyouts, equity, and debt in companies that can benefit from its in-house operating professionals and experience. The firm has invested in and managed more than 420 companies worldwide with combined sales in excess of $50 billion since its inception in 1995. Sun Capital has offices in Boca Raton, Los Angeles and New York, and an affiliate office in London.
© 2021 Private Equity Professional | July 23, 2021
