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November 1, 2018
Private Equity

Argosy Exits AUC Group, L.P.

On November 1, 2018, Argosy Investment Partners V, L.P. and Argosy Investment Partners Parallel V, L.P., funds managed by Argosy Private Equity (“Argosy”), exited their investment in AUC Group, L.P. AUC was acquired by AquaVenture Holdings Limited (NYSE: WAAS), a water services company focused on providing a platform for water purification solutions.

Founded in 1970 as TEC Industries, AUC is a leading provider of wastewater treatment solutions to municipalities, Municipal Utility Districts, and corporations primarily in the state of Texas. AUC provides a turnkey service offering composed of design, fabrication, installation, and financing of modular wastewater treatment facilities. The Company builds facilities for customers and offers financing of facilities through conditional sales, installment sales, and leasing agreements. Solutions are tailored to the capacity needs of municipalities and developers who find AUC’s modular solutions to be more cost-effective.

The Company’s modular design and ability to scale the capacity of the plants to match customer needs provides a unique alternative to the traditional permanent facility. By partnering with AUC, developers and municipalities can efficiently handle their wastewater treatment needs and minimize up-front capital outlays.

Under Argosy’s ownership, AUC built on its leadership position in the fast-growing Texas markets and successfully expanded the business into other states. AUC also expanded its offerings by adding services such as by-pass plants to its line-up while greatly enhancing the Company’s presence in the waste water industry through a focused marketing strategy. Through these and other initiatives, AUC substantially grew its revenue and EBITDA during Argosy’s hold period, resulting in a meaningful increase in the value of the business at exit.