ORIX Capital Partners LLC, a New York-based private equity firm and business unit of ORIX USA Corporation (“ORIX USA”), announced today that it has sponsored a private equity investment and has acquired Hoffman Southwest Corp. (“HSW”), a rapidly growing provider of water flow inspection, repair and cleaning services.
A former portfolio company of the private equity firm Sterling Partners, HSW provides underground pipe inspection, trenchless pipe repair, excavation and cleaning services for municipal and utility customers under the Pro-Pipe brand, and plumbing, drain cleaning, trenchless pipe repair and water restoration services for commercial and residential customers as the largest franchisee of the Roto-Rooter® brand.
The company’s existing executive management team, including CEO Mark Burel and CFO Bruce Lux, will continue to lead daily operations and provide strategic direction alongside ORIX Capital Partners.
“We look forward to working with ORIX Capital Partners, as they provide a depth of capital and resources needed to achieve our vision for continued future growth,” Burel said. “Together with a global powerhouse like ORIX, we have the ability to focus on organic growth initiatives, geographic expansion and strategic acquisitions.”
Through an opportunistic, value-oriented, “buy-and-build” investment philosophy, ORIX Capital Partners—formerly known as IX Capital Partners—is able to respond quickly to attractive opportunities and work effectively with management and co-owners to tackle challenges and enhance business prospects.
“Our country’s aging infrastructure will drive enormous demand for underground infrastructure risk mitigation as municipalities and utilities work to ensure our pipes are functioning safely and properly for the public,” said Terry Suzuki, President and CEO at ORIX Capital Partners. “We will seek strategic add-ons which will complement HSW’s historically strong organic growth and support Burel’s team in building a long-standing legacy, known for customer-focused service, safety, technology and industry leading insights and initiatives.”
The transaction closed on Jan. 31, 2017.