H.I.G. Whitehorse provides $87 mln to Vessco

H.I.G. Whitehorse has provided $87 million in debt and equity financing to Minneapolis-based Vessco Inc, a manufacturer of about 150 water and wastewater treatment equipment OEMs. Capstone Headwaters advised Vessco on the transaction. The capital will be used by Vessco to support their latest-add on acquisition and refinance existing debt. Vessco is backed by O2 Investment Partners.


Capstone Headwaters, a leading international investment banking firm, is pleased to announce the closing of $87.0 million in financing for Vessco Inc. (“Vessco” or the “Company”), the proceeds of which will be used to help finance their latest add-on acquisition and to refinance existing debt. The capital was provided by H.I.G. Whitehorse (“Whitehorse”).

“We are excited to have found such a great strategic partner in Whitehorse and look forward to working with them to support our continued growth at Vessco. The Capstone Headwaters team introduced us to a number of strong institutional lenders and provided us with strategic advice throughout the transaction process.”
– Pat Corden, Vice President, O2 Investment Partners

Based in Minneapolis, the Company serves as a manufacturer’s sales representative (i.e., value-add distributor) within exclusive territories for approximately 150 water and wastewater treatment equipment OEMs. Their customer base primarily consists of municipalities and industrial companies that operate water and wastewater treatment facilities and the general contractors, engineering firms and consultants that advise those ultimate end users on the construction and operation of those treatment facilities. Vessco sells a variety of water and wastewater treatment products and related services including pretreatment equipment, pumps, tanks, mixers, chemical feed equipment, valves, actuators, water softening equipment, biological treatment equipment, sludge treatment equipment and biogas treatment equipment.

Vessco was acquired in 2018 by O2 Investment Partners, a Detroit-based private equity firm (the “Sponsor”) who has now completed three add-on acquisitions as part of a larger acquisition-focused growth strategy.

About Capstone Headwaters
Capstone Headwaters is one of the largest independent investment banking firms in the United States with a rich 17+ year history of achieving extraordinary results for middle market entrepreneurs, business owners, investors, and creditors. CSHW offers a fully integrated suite of corporate finance services, including merger & acquisition, debt & equity private placement, corporate restructuring, valuation & fairness opinion, and financial advisory services. Headquartered in Boston and Denver, Capstone Headwaters has over 160 professionals across 17 offices in the U.S. and an international presence that includes over 450 professionals in 40 countries. With 16 dedicated industry groups, the firm delivers sector-specific expertise through large, cross-functional teams on a global basis. For more information, visit www.capstoneheadwaters.com