29 July 2024, London/Indiana - Stanley Capital Partners (“SCP”), the specialist Healthcare and Resource Efficiency private equity investor with a Digital-First approach, is pleased to announce a majority investment in SePRO Corporation (“SePRO”), together with Goldman Sachs Alternatives as a minority co-investor. SePRO is a leading specialty environmental restoration company focused on water quality. The financial details for this transaction were not disclosed.
Founded in 1994 and headquartered in Carmel, Indiana, SePRO Corporation is a leader in developing sustainable solutions that protect, preserve, and restore nature. SePRO serves a diverse range of industries including drinking water reservoirs, industrial and commercial water consumers, flood prevention, irrigation districts for food production, watershed management, leisure, tourism and specialty agriculture. Committed to innovation and customer satisfaction, SePRO continues to pioneer environmentally responsible solutions.
SePRO has consistently grown faster than the wider water management market. This growth has been driven by high levels of customer engagement and product innovation that has yielded a strong and resilient brand identity. Future growth is expected to be realised by investment into protection and remediation solutions of water quality supported by stronger environmental regulation.
Today, water quality has an increasing importance for communities globally with changing temperatures and other environmental conditions increasing the prevalence of nutrient pollution, algae and invasive species problems.
The investment from SCP and Goldman Sachs Alternatives will further accelerate SePRO’s ability to provide the best-in-class solutions, emerging technologies and technical support to customers in water management as well as other sectors through organic growth strategies and acquisitions. SCP’s 130-person digital development and transformation team will partner with leadership to accelerate this digital transformation journey.
James Brooks, Founding Partner at Stanley Capital, commented:
We are excited to partner with SePRO management and Goldman Sachs Alternatives to build a technology-enabled growth story that will continue to build on the significant success of SePRO in profitable partnerships with clients to protect, preserve and restore nature. Investing in protecting our global water resources is core to SCP’s Resource Efficiency strategy.
Patrick Hargutt, Founding Partner at Stanley Capital, added:
Our investment thesis at Stanley Capital Partners emerged from extensive research into the water and water-related solutions subsector from which we identified SePRO as an attractive platform for consolidating this space. SePRO’s mission of using innovation to create environmentally responsible solutions to protect and preserve surface water bodies is incredibly powerful and this strategy aligns perfectly with our focus on Resource Efficiency. We look forward to supporting Tyler Koschnick and SePRO’s impressive leadership team in driving this exciting new chapter of growth across the United States and beyond.
Beat Cabiallavetta, Head of Hybrid Capital at Goldman Sachs Alternatives, stated:
We look forward to partnering with SePRO leadership and Stanley Capital Partners. The company has established itself as a leading provider in the Water Management sector, with a differentiated offering and strong track record, and we are excited to support the next phase of growth.
Tyler Koschnick Ph.D., President at SePRO, concluded:
For the past three decades, our mission and strategic purpose has been to protect, preserve and restore more nature projects with a priority focus on sustainability in all that we do. We are therefore extremely excited to announce this investment into SePRO that Stanley Capital is making in partnership with Goldman Sachs. On a daily basis, we continue to read headlines about beaches being closed, dangerous phosphorus pollution found in lakes, invasive weeds taking over and toxic algae destroying the fundamental ability to enjoy our water resources. By providing expanded and innovative problem-solving products and services to the market, we will be able to offer customers unsurpassed technical support and solutions for water quality restoration and Resource Efficiency on a truly global basis.
Barclays served as lead financial advisor to SCP and Sidley Austin LLP served as legal advisor. Raymond James served as lead advisor to SePRO and Piper Sandler served as co-advisor to SePRO, while Winston & Strawn LLP served as legal advisor to both SePRO and Excellere Partners.
Stanley Capital Partners
Stanley Capital Partners is a European mid-market private equity firm using a research and technology-based approach to identify opportunities in the growing sustainable investment sectors of Healthcare and Resource Efficiency. SCP targets businesses with the potential of generating EBITDA of $25m to $150m. We partner with management teams, in majority and minority transactions, to transform and grow companies through technological change, operational change and market consolidation.
SCP was founded in 2019 by Simon Cottle, James Brooks and Patrick Hargutt and has a team of over 150 professionals working closely together with its Leader Network and investors, sector and technology partners.
This investment marks SCP’s second investment in the Resource Efficiency sector, following the strategic acquisition of Roboyo in October 2023 and the fourth investment for its inaugural fund. To read the Roboyo announcement in full, please click here: https://stanley-capital.com/news-and-insights/stanley-capital-partners-announces-first-resource-efficiency-investment-with-roboyo.
Find out more at www.stanley-capital.com
SePRO Corporation
Founded in 1994 and headquartered in Carmel, Indiana, SePRO Corporation is a leader in developing sustainable solutions that protect, preserve, and restore nature. Specializing in specialty environmental products and services, SePRO serves a diverse range of industries including professional aquatics, landscape management, golf courses, ornamental production, and specialty agriculture. Committed to innovation and customer satisfaction, SePRO continues to pioneer environmentally responsible solutions.
Find out more at www.sepro.com
Goldman Sachs Alternatives
Goldman Sachs (NYSE: GS) is one of the leading investors in alternatives globally, with over $450 billion in assets and more than 30 years of experience. The business invests in the full spectrum of alternatives including private equity, growth equity, private credit, real estate, infrastructure, hedge funds and sustainability. Clients access these solutions through direct strategies, customized partnerships, and open-architecture programs.
The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets.
The alternative investments platform is part of Goldman Sachs Asset Management, which delivers investment and advisory services across public and private markets for the world’s leading institutions, financial advisors and individuals. Goldman Sachs has over $2.8 trillion in assets under supervision globally as of December 31, 2023.
Established in 1996, Private Credit at Goldman Sachs Alternatives is one of the world’s largest private credit investors with over $110 billion in assets across direct lending, mezzanine debt, hybrid capital and asset-based lending strategies. The team’s deep industry and product knowledge, extensive relationships and global footprint position the firm to deliver scaled outcomes with speed and certainty, supporting companies from the lower middle market to large cap in size.
Hybrid Capital is a flexible, “all-seasons” investment program that invests in debt, equity and hybrid structures, providing companies across industries and geographies with bespoke solutions, including for acquisitions, recapitalizations, and other complex financings.
Find out more at www.goldmansachs.com
For further information and media enquiries, please contact:
EQ (for SCP)
James Culverhouse
T: +44 (0)20 7223 1100 / +44 (0)7912 508 322
E: james.culverhouse@eqcorp.co
Samantha Bock (for SePRO)
T: 317-955-9099
E: samantha.bock@sepro.com