Graycliff Partners has invested in ValveTek Utility Services and MeterTek Utility Services through its GCP Ascend small-cap fund, establishing the water infrastructure services businesses as the fund’s second platform investment. Financial terms of the transaction were not disclosed.
Kenilworth, New Jersey-based ValveTek and MeterTek provide water meter and distribution system services to municipal and investor-owned water utilities.
Founded in 2000, the businesses operate from six facilities across the Northeast.
Their teams replace residential and commercial water meters, exercise valves and hydrants and perform meter pit construction.
The services are used by utilities to maintain water distribution infrastructure, improve system reliability and safety and support compliance with regulatory requirements.
ValveTek and MeterTek were previously owned by entrepreneurs Jeff Favina, Christina Loor and Gary Mahoney.
All three owners will remain with the business following Graycliff’s investment.
Favina will continue serving as CEO.
With Graycliff’s backing, management plans to expand into additional markets and add services while continuing to serve municipal and investor-owned utility customers.
The transaction is the second platform investment for GCP Ascend.
The fund focuses on partnerships with founder- and family-owned businesses operating across manufacturing, industrial services and value-added distribution.
KEY QUOTES:
“We are thrilled to move forward with Graycliff as our financial and strategic partner. Graycliff understood our business and our culture from the outset. With their experience and resources, we are eager to expand into new markets, add services, and keep delivering for our utility and municipal customers.”
Jeff Favina, CEO of ValveTek And MeterTek
“We are impressed by the experience, passion, and enthusiasm of the team and the trusted reputation they’ve built with water utilities across the Northeast. We are excited to support the team as it builds on that foundation by expanding into new markets and additional services.”
Sarah Paquet, Principal at GCP Ascend
