Bregal Partners-backed Aqua Terra expands through U.S. acquisitions

Aqua Terra Water Management LP, a Canadian portfolio investment of U.S. private equity firm Bregal Partners, has bought North Dakota-based saltwater disposal facilities operated by Borejaks Energy Services LLC. The financial terms of the deals were not disclosed. In addition, Aqua Terra announced that its Grande Prairie, Alberta-based subsidiary Four Winds Energy Services Ltd has opened two new facilities serving the Viking oil play in southeastern Alberta. Last month, Four Winds acquired Integrity Custom Processing Inc and assets belonging to Kasten Energy Inc.

PRESS RELEASE

Aqua Terra Water Management Announces Expansion into the United States and New Facility Openings

August 14, 2014

NEW YORK–(BUSINESS WIRE)–Aqua Terra Water Management, L.P. (“Aqua Terra” or the “Company”), has announced the acquisition of two saltwater disposal facilities operated by Borejaks Energy Services, LLC. Terms of the acquisitions were not disclosed.

“We are executing on our vision of creating a best in class North American water management company”

The acquired facilities are located in the heart of the Bakken shale in the McKenzie and Dunn counties of North Dakota, and represent the Company’s first entry into the U.S. saltwater disposal industry. The facilities will operate under the Aqua Terra brand.

“Entering the Bakken shale is consistent with our desired goal of serving all the major light oil and liquids rich plays in North America,” said Scott Perekslis, Managing Partner and co-founder of Bregal Partners. “Our pending facility near Alameda, Saskatchewan combined with the acquired facilities in the U.S. Bakken creates a cross-border solution that few water management companies can provide.”

In addition to the recent acquisition, Four Winds Energy Services Ltd. (“Four Winds”), a wholly-owned subsidiary of Aqua Terra, announced the recent opening of two new facilities serving the Viking oil play in southeastern Alberta. Tom Johnston, President of Four Winds, commented, “The addition of our new greenfield facilities at Crossfield and Drumheller allows us to meet the produced water needs in this active emerging play.”

“We are executing on our vision of creating a best in class North American water management company,” Perekslis added. “Through greenfield development and acquisitions, we have expanded Aqua Terra’s network from 2 facilities to 10 since we formed the Company last November, and we would expect to operate in excess of 14 facilities by December of this year.”

Johnson Rice & Company L.L.C. served as the financial advisor to Aqua Terra, and Dechert LLP served as the legal advisor on the acquisition. Deerpath Capital Management, LP provided financing on the acquisition.

About Aqua Terra Water Management , L.P.

Aqua Terra Water Management, L.P. is an independent merchant operator of salt water disposal facilities. Its current network of Class 1b and Class II facilities serves customers throughout the Canadian provinces of Alberta, Saskatchewan, and British Columbia as well as U.S. producers in the Bakken shale. Aqua Terra is actively seeking greenfield development opportunities and acquisitions in both the U.S. and Canada.

About Bregal Partners

Bregal Partners is a private investment firm that invests alongside management teams to build industry leading companies in the middle market. Areas of focus include energy services, consumer, food and retail, and healthcare. With $500 million of committed capital funded by a sixth-generation family foundation with roots back to 1841, Bregal Partners brings experience, stability, and a long-term outlook to all of its investment activities. Bregal Partners is part of Bregal Investments, a global family of private equity and fund investment vehicles that has invested more than $9 billion since 2002. For more information on Bregal Partners, please visit www.bregalpartners.com.

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