Rox Capital Partners announced the sale of The Scruggs Companies to The Sterling Group, marking the exit of its investment in the municipal water infrastructure platform.
Scruggs was formed through the combination of The Scruggs Companies and Neil Technical Services, creating a regional provider of flow control products and maintenance services supporting municipal water and wastewater systems. The company is headquartered in Houston, Texas, and serves customers across the Southern and Midwestern United States.
During its ownership, Rox Capital partnered with management to execute a growth strategy focused on expanding product offerings, enhancing service capabilities, and scaling operations. This included integrating Neil Technical Services into the platform and strengthening relationships with municipal customers.
The transaction positions Scruggs for its next phase of growth under Sterling’s ownership, with the existing leadership team remaining in place to ensure continuity and execution of strategic initiatives.
The deal reflects continued private equity interest in essential infrastructure services, particularly in water and wastewater systems, where demand remains resilient and driven by long-term municipal investment needs.
Financial terms of the transaction were not disclosed.
KEY QUOTE:
“We are proud of what the Scruggs and NTS teams have accomplished and grateful for our partnership with management. This investment reflects our strategy of partnering with strong operators to build leading businesses in essential service sectors. We believe the company is well positioned for continued success in its next chapter with Sterling.”
Al Cameron, Managing Partner, Rox Capital Partners
