Key Takeaways
- • Turnspire Capital Partners has completed the sale of USG Water Solutions to Warren Equity Partners, marking the exit from a water infrastructure services platform acquired from Veolia in 2023.
- • Warren Equity acquired USG Water at approximately 14 times Ebitda, below the initial 14.5–15x threshold required for management presentations, based on USG's ~$40 million Ebitda run-rate.
- • USG Water operates 70+ facilities across North America, providing maintenance and rehabilitation services for water storage tanks, pipe networks, and concrete water/wastewater plant structures, plus metering solutions.
- • The sale concluded a competitive auction that attracted 50+ first-round bidders and narrowed to finalists including Harvest Partners, New Mountain Capital (which owns Inframark), and Warren Equity.
- • Turnspire's ownership drive focused on margin optimization, Ebitda growth, and cash flow generation, positioning the company for downstream capital deployment under new ownership.
Summary
Turnspire Capital Partners has sold USG Water Solutions LLC to Jacksonville Beach-based Warren Equity Partners, according to an announcement on June 3, 2026. The transaction concluded a competitive auction process that began with more than 50 first-round bidders, narrowing to a final group of sponsors competing aggressively for the Atlanta-based water infrastructure services provider.
Warren Equity prevailed in the auction with a bid valued at approximately 14 times Ebitda, according to The Deal. This multiple fell below the 14.5–15x Ebitda range initially required for inclusion in final management presentations, suggesting either competitive pressure or strong conviction on Warren Equity's part regarding operational upside. Given reported Ebitda of approximately $40 million, the transaction implies an enterprise value in the $560 million range, though Turnspire declined to disclose final terms publicly.
USG Water, founded in 1963, operates more than 70 facilities across North America and provides comprehensive water asset management services including maintenance and rehabilitation of water storage tanks, pipe networks, and concrete water/wastewater plant structures, alongside metering solutions. The company represents a critical component of municipal and industrial water infrastructure management.
Turnspire acquired USG Water from the U.S. arm of Veolia Environnement SA in 2023. During its three-year ownership, Turnspire stated that the platform achieved margin optimization, Ebitda growth, and significant cash flow generation while expanding its geographic footprint—a value creation thesis consistent with lower middle-market buyout objectives. Harris Williams LLC and Chapman and Cutler LLP provided financial and legal advisory services during the transaction.
The competitive process included finalists such as Harvest Partners and New Mountain Capital, which owns Inframark, a complementary water infrastructure platform. Warren Equity's acquisition signals continued private equity appetite for regulated water services, a sector benefiting from aging infrastructure replacement cycles and elevated capital intensity across municipal systems.
Warren Equity prevailed in the auction with a bid valued at approximately 14 times Ebitda, according to The Deal. This multiple fell below the 14.5–15x Ebitda range initially required for inclusion in final management presentations, suggesting either competitive pressure or strong conviction on Warren Equity's part regarding operational upside. Given reported Ebitda of approximately $40 million, the transaction implies an enterprise value in the $560 million range, though Turnspire declined to disclose final terms publicly.
USG Water, founded in 1963, operates more than 70 facilities across North America and provides comprehensive water asset management services including maintenance and rehabilitation of water storage tanks, pipe networks, and concrete water/wastewater plant structures, alongside metering solutions. The company represents a critical component of municipal and industrial water infrastructure management.
Turnspire acquired USG Water from the U.S. arm of Veolia Environnement SA in 2023. During its three-year ownership, Turnspire stated that the platform achieved margin optimization, Ebitda growth, and significant cash flow generation while expanding its geographic footprint—a value creation thesis consistent with lower middle-market buyout objectives. Harris Williams LLC and Chapman and Cutler LLP provided financial and legal advisory services during the transaction.
The competitive process included finalists such as Harvest Partners and New Mountain Capital, which owns Inframark, a complementary water infrastructure platform. Warren Equity's acquisition signals continued private equity appetite for regulated water services, a sector benefiting from aging infrastructure replacement cycles and elevated capital intensity across municipal systems.
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