News | November 2, 2020

Frontenac Enters The Global Modular Water Treatment Market With The Acquisition Of Newterra Group

frontenac

Chicago, Illinois – Frontenac Company (“Frontenac”) announced today that it has acquired Newterra Group Ltd. (“Newterra” or the “Company”), a Global Modular Water Treatment Company, from its current shareholders including institutional investors XPV Water Partners and Angeleno Group, LLC. The financial terms of the transaction were not disclosed. Capstone Headwaters and its Water Technology Practice advised Newterra and its board on this transaction.

Newterra is a global leader in designing, engineering, manufacturing, and servicing modular treatment solutions for water, wastewater, stormwater, and groundwater. Founded in 1992 with brands dating back to 1863, Newterra helps clients across a wide range of industries and sectors solve their water and wastewater challenges, offering both standard products and fully customized engineered solutions. Over the past several years in addition to robust organic growth, Newterra has acquired and integrated several companies in key industrial and municipal sectors, broadening its capability to address the needs of global customers with their water and wastewater challenges. President & CEO, Tom Vossman, along with the current executive team, will continue in their roles leading the Company. Water industry veteran and a former Frontenac portfolio company CEO Jim McGivern will join the Board.

“We have enjoyed strong growth in the past several years as we executed a number of key initiatives that expanded our customer base, product and service capabilities, and global reach,” said Tom Vossman. “With Frontenac as our new partner, we are excited to continue our expansion plans, both organic and inorganic, as we execute on our strategic plan to be a major force in the growing decentralized water treatment market around the world.”

Ron Kuehl, Managing Director of Frontenac, said, “Newterra has built an impressive business and carved out a leading role for itself within the water treatment category. The company’s creative solutions and vast capabilities position it to benefit from the increasing demand for clean water across the globe. Despite the challenges facing the economy this year, the Company has continued to perform exceptionally well by driving sales, completing strategic acquisitions, and expanding margins. We’re excited to partner with Tom, Jim, and the entire team going forward.”

David Henderson, Managing Partner at XPV Water Partners, added, “We are very proud that Newterra has established itself as a global industry leader in the decentralized water treatment market, and we are excited to see the next steps of their growth with Frontenac. Newterra has been an important part of the XPV portfolio as they have made a significant and positive impact on water resources all around the world.”

Daniel Weiss, Managing Partner of Angeleno Group, commented “We congratulate Tom Vossman and the talented team at Newterra as they enter this exciting next phase of the company’s growth. Not only have they built a leading advanced modular wastewater treatment technology business, but Newterra has made a real contribution to its customers and the planet – helping clients in a wide range of industries operate more efficiently, sustainably and safely – annually treating over 60 billion gallons of water worldwide. We are proud of their impact as an Angeleno Group portfolio company.

About Newterra

Newterra is a leader in designing, engineering, manufacturing, and servicing Modular Treatment Solutions for water, wastewater, and groundwater. Newterra’s comprehensive portfolio of brands include Cochrane, TIGG, Aeration Industries, StormwateRx, MicroClear Membranes, EPRO and of course Newterra. The Company’s customers include Private Developers, Industries, Institutions, Municipalities, EPC firms, Government entities, Food and Beverage companies, Remediation consultants and contractors and Aquaculture companies. Newterra provides technologies that include Deaerators, Membrane Filtration such as RO and UF, Modular Membrane Bioreactors (MBR) and Potable Water Systems, Sequential Batch Reactors (SBR), Surface Aeration Products, Stormwater treatment, Chemical Treatment systems, and a host of Remediation Technologies including products related to PFAS and emerging contaminants removal. For more information, visit http://www.newterra.com.

About Frontenac

Frontenac is a Chicago-based private equity firm. The firm focuses on investing in lower middle market buyout transactions in the consumer, industrial, and services industries. Frontenac works in partnership with proven operating leaders, through an executive-centric approach called CEO1ST, to identify, acquire, and build market-leading companies through transformational acquisitions and operational excellence. The firm has built a leading franchise working with over 300 owners of mid-sized businesses as they address complex transition issues of liquidity, management enhancement, and growth planning. For more information on Frontenac, please visit http://www.frontenac.com.

About XPV

XPV Water Partners is comprised of experienced water entrepreneurs, operators, and investment professionals dedicated to making a difference in the water industry. XPV invests in and actively supports water-focused companies to enable them to grow and deliver value for all stakeholders. XPV manages over $400 million USD in investment capital from institutional investors in North America, Europe, and Asia. For more information, visit http://www.xpvwaterpartners.com

About Angeleno Group

Founded in 2001 and based in Los Angeles, CA, Angeleno Group is a pioneer in providing growth capital for next generation clean energy and climate solutions companies. Angeleno Group invests opportunistically in a range of deal types, with a strategy that is sector-focused, stage-agnostic, and research-driven. Since its founding, Angeleno Group has become one of the largest dedicated clean energy growth equity investment firms, deploying capital on a global basis, backed by a world class set of institutional investors and visionary and strategic business and technology leaders from the energy, water and resource efficiency industries. http://angelenogroup.com/

About Capstone Headwaters

Capstone Headwaters is one of the largest and most active independent investment banking firms in the United States. The firm has a rich 15+ year history of achieving extraordinary results for middle-market entrepreneurs, business owners, investors, and creditors. Capstone offers a fully integrated suite of corporate finance services, including merger & acquisition, debt & equity placement, corporate restructuring, valuation & fairness opinion, financial advisory, and ESOP advisory services. Headquartered in Boston, the firm has 150+ professionals across 16 offices in the U.S., with and an international presence including over 450 professionals in 40 countries. With 16 dedicated industry groups, the firm delivers sector-specific expertise through large, cross-functional teams on a global basis. Capstone has been named “U.S. Middle Market Investment Bank of the Year” for the past 9 consecutive years and is consistently recognized as one of the top investment banking firms to work for. For more information visit http://www.capstoneheadwaters.com.

Source: Newterra, Ltd.