Asheville, N.C., company announces acquisitions of businesses in Vermont and Pennsylvania focused on water and wastewater infrastructure
Infrastructure Services Group LLC becomes the largest for-profit company with its corporate headquarters based at The Collider, located in “Climate City”
[ASHEVILLE N.C. – March 2018]: Infrastructure Services Group LLC, a North Carolina-based company that uses the most up-to-date technology to inspect and repair part of the 1.6 million miles of underground water and wastewater pipelines and associated manholes in the U.S., announces the acquisition of companies in Vermont and Pennsylvania with combined revenues of more than $32 million.
Green Mountain Pipeline Services, with its main office in Bethel, Vermont, and Mr. Rehab, located in Mechanicsburg, Pennsylvania, offer state-of-the art trenchless cleaning, maintenance, and repair or rehabilitation of water and wastewater pipelines, both gravity and pressure fed, and their related structures, such as manholes. The companies serve municipalities and industry using trenchless technologies that lessen more disruptive and expensive “dig and replace” techniques.
The business thesis for Infrastructure Services Group strongly embraces the relationship between climate, weather and water says ISG founder and CEO Thomas R. (Tom) Barr, whose career solving problems in water and wastewater management and water-related laboratory testing spans more than three decades. He views the significant water infrastructure pipeline challenges in a holistic way, beyond just inspection and repair.
“Every two minutes a water main breaks in the United States, with more than two trillion gallons of treated water lost every year,” Barr said. “Over the past several decades, extreme weather exacerbated by climate change, changing demographics, and decaying infrastructure have contributed to major pipeline challenges.”
Barr says water and wastewater systems will need as much as half a trillion dollars over the next 25 years – of that, as much as $300 billion in the next five years alone just to maintain the current systems.
“Perhaps because it is underground and out of sight, it’s easy to let water and wastewater infrastructure deteriorate significantly so the challenge will be with us for decades to come,” said Barr. “Such systems require continuous inspection and maintenance, as well as major relining.”
ISG was formed by Barr, a veteran in growing successful companies, and acquired in a partnership led by Juniper Capital Management, a Dallas-based private equity firm whose focus includes investing in growth opportunities in the infrastructure, manufacturing and industrial service industries.
In 1986, as CEO with investors, Barr acquired a water and wastewater treatment contract operations and laboratory company. After growing sales by 400 percent in 10 years and receiving the Inc. 500 Fastest Growing Company award two years in a row, the water treatment division was sold to Culligan. The environmental laboratory’s name was changed to TestAmerica with revenues of $6 million.
As a result of a focused roll-up play led by Barr, TestAmerica grew to more than $350 million in sales with over 15 acquisitions as well as strategic divestments. Equity investors and financial institutions supported the company’s growth. Like he did with TestAmerica, Barr seeks to grow ISG in a similar manner.
The acquisitions of Green Mountain Pipeline Services and Mr. Rehab make ISG the largest for-profit company with its corporate headquarters at The Collider, a global innovation center for climate entrepreneurs located in downtown Asheville. Nicknamed “Climate City,” Asheville is also home to NOAA National Centers for Environmental Information, the largest repository of weather and climate data in the world.