Astara Capital Partners has acquired Dynatec Systems, adding a nearly five-decade-old industrial wastewater treatment business to its middle-market portfolio as demand increases for water reuse, treatment infrastructure and solutions for difficult industrial waste streams. Financial terms of the transaction were not disclosed.
Founded in 1978 and headquartered in Burlington, New Jersey, Dynatec designs, builds, operates and services membrane-based industrial wastewater treatment systems.
Its systems help industrial customers treat wastewater for either discharge or reuse.
Dynatec serves blue-chip customers across industries including food and beverage, automotive, data centers, waste management and general manufacturing.
The company specializes in particularly difficult wastewater streams that require more advanced treatment approaches.
Astara plans to invest in Dynatec’s workforce, technology and service capabilities while expanding the company’s reach into additional end markets and adjacent treatment technologies.
A major focus will be growing Dynatec’s design-build-own-operate-maintain, or DBOOM, capabilities.
That model allows Dynatec to participate across more of a wastewater system’s lifecycle, ranging from initial engineering and construction to ownership, operation, maintenance and ongoing service.
Astara also plans to expand Dynatec’s aftermarket services business.
The investment firm sees several structural trends supporting demand for the company’s technology.
These include increasing water scarcity, the reshoring of manufacturing activity in North America and tighter regulations around industrial wastewater discharge.
As industrial companies expand production and face greater constraints around freshwater availability and discharge requirements, the ability to treat and reuse wastewater can become increasingly important.
Dynatec’s membrane-based systems are designed to help customers address those challenges while reducing reliance on conventional disposal approaches.
Following the acquisition, Dynatec will be led by an expanded leadership team.
Hu Fleming, an experienced water industry executive and Astara strategic advisor, will join Dynatec’s Board of Directors as Executive Chairman.
Founder and President Tom Doherty will remain with the business and retain a meaningful ownership stake.
Doherty founded Dynatec in 1978 and has led the company through decades of growth in industrial membrane treatment technologies.
Astara specializes in middle-market investments across sectors where its team has operating experience, including water infrastructure, building products, home services, food, packaging, manufacturing and distribution.
Dentons and Robinson, Bradshaw & Hinson served as legal advisors to Astara.
KEY QUOTES:
“I founded Dynatec in 1978 to provide membrane wastewater solutions, and I’m proud of everything our team has accomplished since. Astara is the right partner to carry that legacy forward, and I look forward to seeing the continued growth of the Company.”
Tom Doherty, Founder and President of Dynatec Systems
“We are excited to partner with Dynatec Systems, a respected leader with decades of experience in industrial wastewater treatment. Industrial and manufacturing companies are facing mounting pressure to treat and reuse their toughest waste streams, and Dynatec’s service offering is uniquely suited to help.”
“Our priority is to keep delivering the best-in-class solutions and exceptional service Dynatec’s customers count on, while investing strategically in organic growth initiatives and transformative process improvements to meet rapidly growing demand.”
Lindsey Tannenbaum, Partner at Astara Capital Partners
