Environmental Capital Partners has acquired a majority stake in Cascade Drilling LP, a provider of environmental drilling services for water and soil assessment, monitoring and remediation purposes on the West Coast. No pricing terms were disclosed. PNC Business Credit arranged the leveraged financing, while Cascade was advised by Morgan Stanley.
Environmental Capital Partners (“ECP”), a New York based private equity firm, with its affiliates announced today that it has made an investment in Cascade Drilling, L.P. in order to fund the Company’s future growth initiatives. Bruce Niermeyer, the Company’s founder, remains a significant shareholder and will continue as President and CEO of the Company. Mr. Niermeyer has been a leader in the drilling industry for decades and has been instrumental in developing Cascade Drilling into one of the largest independent drilling companies in North America focused on the environmental sector. The transaction enables the Company to expand significantly while affording it the ability to continue to service its customers at the highest level. Terms of the agreement were not disclosed.
“We are delighted with our investment in Cascade Drilling. By providing environmental drilling services for water and soil assessment, monitoring, and remediation purposes, Cascade Drilling is a perfect fit with our broader mission to promote the growth of companies that enhance environmental sustainability,” said Robert Egan, a Managing Partner of ECP. “Our investment provides the business with the flexibility to grow beyond existing locations in Seattle, Los Angeles, Sacramento and Portland and for expanded service offerings while maintaining its keen focus on safety and customer service. Technological advances in remediation, an ever increasing need to assess and clean up contaminated sites, and the improved economics of applications such as geothermal heat transfer will provide secular growth in Cascade Drilling’s core sectors. Bruce Niermeyer has built an industry leading company through deep knowledge and outstanding leadership; we look forward to partnering with Bruce in developing Cascade Drilling in the coming years.”
“Our relationship with ECP will provide us with a long-term partner to promote future growth and enable us to build upon our leadership position by expanding the locations in which we offer clients the highest level of service and safety,” Cascade Drilling President and CEO Bruce Niermeyer said. “I view the transaction as a natural progression within Cascade Drilling’s lifecycle. We have grown without outside resources to cover the entire West Coast and are now at the point where it makes sense to team with an institutional partner to take the Company to the next level. ECP has shown a strong commitment to Cascade Drilling’s core values of safety first and quality while demonstrating the skills and track record I was looking for in a partner.”
Morgan Stanley Smith Barney’s Capital Strategies Group served as exclusive financial advisor to Cascade Drilling in this transaction. PNC Business Credit arranged the financing for the transaction. O’Melveny & Myers LLP and Karr Tuttle Campbell provided legal advice to ECP and the Company, respectively.
About Cascade Drilling
Cascade Drilling is a leading provider of environmental drilling services for water and soil assessment, monitoring, and remediation purposes on the West Coast. The Company is a recognized regional leader in auger and direct push drilling, standard drilling methods for assessing the extent of subsurface contamination. Cascade Drilling also provides rotary, sonic and other drilling methods, which allows it to offer a wide range of environmental drilling services. The Company drills holes for a wide range of reasons, including providing samples of water and soil, installation of devices through drilling that facilitate monitoring, and subsurface application of chemicals or other agents for in situ remediation. Cascade Drilling’s core beliefs are safety first, customer service and quality. For more information about Cascade Drilling, visit www.cascadedrilling.com.
About Environmental Capital Partners
ECP provides long-term capital and management support to leading middle-market companies in the environmental industry with a focus on companies that provide goods and services to prevent, limit, or correct environmental damage to water, air, soil, or human health. Based in New York, ECP typically seeks to invest $5 to $25 million of its own capital in companies with sales of $20 to $150 million. ECP’s model is to invest in established businesses with strong growth potential that can benefit from its financial, operational and strategic resources. For more information, visit the company’s website at www.ecpcapital.com.