O2 Loves H2O

O2 Investment Partners has acquired Steffl Drilling & Pump, a provider of water well drilling and repair services, in partnership with the founding Steffl family.

Steffl Drilling & Pump installs new wells and performs maintenance, replacement, and repair work for municipal, agricultural, commercial, and residential customers. The company also provides geothermal drilling services for ground-source heating and cooling systems, and PFAS (polyfluoroalkyl substances, commonly known as “forever chemicals”) remediation projects. Steffl was founded in 1978 by Mike Steffl and Roxy Steffl and is headquartered 120 miles west of Minneapolis in Willmar, Minnesota.



“The Steffl team is thrilled to partner with O2 at an exciting point in the company’s evolution as we work to build the leading nationwide water well drilling and repair services platform,” said Sam Steffl, the CEO of Steffl. “In a supply-constrained industry that supports critical infrastructure, O2’s resources and expertise will enable us to expand our capabilities and broaden our reach to service and install water wells for additional customers, while continuing to deliver a premium experience to our existing customer base."

O2 Investment Partners makes control investments in companies with EBITDA of more than $5 million located anywhere in the United States and Canada, but with a preference for the Midwest and the Great Lakes regions. The firm’s typical transaction size is $15 million to $50 million. Industries of interest include B2B services, technology, and select industrial companies.

[caption id="attachment_236568" align="alignright" width="120"] William Laffrey[/caption]

“We are delighted to partner with Sam Steffl at Steffl Drilling & Pump. It is rare to find an operator with his blend of industry knowledge and execution capabilities, and we are confident we are backing a best-in-class team and platform that is well equipped to service the water well drilling industry,” said William Laffrey, a vice president at O2. “Steffl is a premier regional leader in an essential, non-discretionary category within a highly fragmented industry, and is well positioned for accelerating growth. We are proud to launch this new platform alongside Sam, his family, and the team at Steffl, whose strong reputation and proven execution capabilities uniquely position Steffl to rapidly scale.”

"Our partnership with O2 will accelerate both organic and acquisition-driven growth across adjacent geographies, end markets, and service lines, allowing us to continue providing the most essential resource, water," concluded Mr. Steffl.

Minneapolis-headquartered Craig-Hallum was the financial advisor to Steffl Drilling & Pump, and CIFC Direct Lending provided debt financing.

O2 was founded in 2010 and is headquartered in the Detroit suburb of Bloomfield Hills, Michigan.