The Colt Group has acquired Watertap, Inc., a provider of pipeline and line intervention services serving utilities and contractors in the Great Lakes region, the company said Thursday.
Financial terms of the transaction were not disclosed. Watertap’s employees will remain with the business following the acquisition, according to the announcement. Colt is backed by Houston-based private equity firm Capstreet.
The acquisition adds a regional operator to Colt’s line intervention platform and expands its service coverage in the Midwest. Watertap was founded nearly 30 years ago and is based in Wixom, Michigan. The company provides line intervention services designed to allow repairs and system modifications to be performed without shutting down active water or pipeline systems, helping municipalities and utilities reduce service disruptions, Colt said.
Jason Box, Colt’s chief executive officer, said the acquisition supports the company’s strategy to expand line intervention capabilities at a national scale.
“Watertap’s technical depth, project experience and longstanding relationships with municipalities and contractors are expected to enhance our ability to respond quickly and reliably across most U.S. markets,” Box said in a statement.
Watertap founder Tony Carpani said the combination is expected to provide additional scale while preserving the company’s operating model.
“By leveraging Colt’s platform, we are positioned to meet growing demand for pipeline intervention services while maintaining the reliability, technical excellence and customer commitment we have built over nearly 30 years,” Carpani said.
Founded in 1981, Colt provides on-line leak sealing, repair and prevention services to industrial customers, including design, engineering, manufacturing and field installation, according to the company. Colt specializes in performing repairs under pressure to minimize downtime and product loss. The company is headquartered in Houston and operates additional locations across the United States.
Capstreet, founded in 1990, invests in lower middle-market business services companies and has completed more than 50 platform investments and more than 200 add-on acquisitions since inception, the firm said.
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