Steffl Drilling & Pump, a Minnesota-based provider of water well drilling and repair services, has secured a private equity investment from O2 Investment Partners to support its growth as a platform business. Financial terms of the transaction were not disclosed.
Founded in 1978 by Mike Steffl and Roxy Steffl in Willmar, Minnesota, the company has grown into a leading regional provider of water well services for municipal, agricultural, commercial, and residential customers across the Upper Midwest. In 2018, their son Sam Steffl joined the business, continuing the family’s leadership and accelerating the company’s growth trajectory. Sam Steffl now serves as CEO.
Steffl Drilling & Pump services the full lifecycle of water wells, including repair, replacement, maintenance, and new well installation. The company also handles PFAS-related remediation and geothermal projects. Since its founding, the company has built a reputation for quality workmanship, rapid responsiveness, and technical expertise in a supply-constrained industry that supports critical infrastructure.
The partnership with O2 Investment Partners is designed to accelerate both organic growth and acquisition-driven expansion across adjacent geographies, end markets, and service lines. O2 Investment Partners is a Midwestern-based private equity firm focused on lower middle market businesses in B2B services, technology, and select industrial sectors.
Support: Craig-Hallum served as the financial advisor to Steffl Drilling & Pump. Financing for the transaction was provided by CIFC Direct Lending.
KEY QUOTES:
“The Steffl Drilling & Pump 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. 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. This partnership 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.”
Sam Steffl, CEO, Steffl Drilling & Pump
“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. 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.”
William Laffrey, O2 Investment Partners
