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Capstone Headwaters Advised Argosy Private Equity and NewSpring Capital on their Sale of AUC Group to AquaVenture Holdings for $130M

November 2018

Denver, CO – Capstone Headwaters, a leading international investment banking firm, announced that it has successfully advised Argosy Private Equity and NewSpring Capital on their sale of AUC Group, to AquaVenture Holdings Limited (NYSE:WAAS) for $130 million.

Based in Houston, TX, AUC Group, L.P. is one of the foremost provider of turn-key, decentralized, modular wastewater treatment and reuse solutions for utility districts, small communities and industrial customers under flexible, fully-financed offerings.  AUC provides flexible, modular treatment plants that are designed to expand as treatment needs increase; large, field erected permanent treatment plants; and temporary bypass plants. AUC has successfully completed more than 1,000 plants in its 45-year history, ranging in capacity from 5,000 gpd to over 1,500,000 gpd, and currently has more than 80 active leases.  While AUC has historically focused on the Texas market, the company is capitalizing on numerous opportunities in the Southeast and Southwest. 

Todd Mueller, CEO of AUC Group, said “The Capstone Headwaters’ team completed a complex transaction with many obstacles.  They were able to positively navigate the deal, will all organizations through selection, management presentations, due diligence and to a successful closing.   Overall a very positive result for all parties.”

AquaVenture Holdings Limited (NYSE:WAAS) is a leader in Water-as-a-Service™  (WAAS™) solutions. Doug Brown, Chairman and CEO of AquaVenture Holdings, commented "We are excited to announce the acquisition of AUC, which expands our WAAS solutions in the wastewater treatment and water reuse businesses. AUC's business model of offering fully-financed solutions with long-term customer relationships mirrors AquaVenture's existing portfolio while broadening our footprint in the United States. We welcome our new teammates and customers to the AquaVenture family."

Samrat Karnik, Managing Director at Capstone Headwaters, said “We sincerely appreciate the opportunity to work with AUC’s management and it’s private equity backers to realize a successful exit to a strategic party such as AquaVenture, that is focused on providing water-as-a-service.   AUC has matured from its humble beginnings 45 years ago to emerge as a pioneering provider of fully-financed scalable, flexible decentralized wastewater treatment solutions for commercial and municipal customers.  In doing so, its business model has evolved into a more utility-like wastewater treatment services company, which will have new growth opportunities as part of AquaVenture.”

The sale of AUC Group represents the seventh successful advisory assignment in the water sector for Capstone Headwaters’ Industrial Technology Group.

“The Capstone Headwaters’ team completed a complex transaction with many obstacles.  They were able to positively navigate the deal, will all organizations through selection, management presentations, due diligence and to a successful closing.   Overall a very positive result for all parties.”
Todd Mueller
CEO
AUC Group