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Investors buy Cumberland County sewer-service provider

A Cumberland County sewer-systems company has been purchased by a Dallas-based private-equity firm that sees opportunities for growth in servicing water-related infrastructure.

The company — Silver Spring Township-based Mr. Rehab Inc. — is one of two purchased by Infrastructure Services Group, or ISG, an investment platform created by Juniper Capital Management and a team of co-investors. The other company is Vermont-based Green Mountain Pipeline Services.

Terms of the deals, announced Friday, were not disclosed.

Mr. Rehab was founded in 2000 by Jim Clark, who is staying on as president of Mr. Rehab. The Cumberland County company provides pipeline inspection, cleaning and maintenance, rehabilitation and other specialty services to engineering, public and industrial sector clients.

The majority of Mr. Rehab’s customers are governmental authorities, said Tom Barr, CEO of North Carolina-based ISG. Mr. Rehab has about 30 employees and serves customers in Pennsylvania and surrounding states, including New Jersey, Maryland and New York.

Barr said ISG sees a lot of opportunities across the country in the water and wastewater sector because of aging infrastructure.

The American Water Works Association expects at least $1 trillion will be required over the next 25 years just to maintain current water-service levels. The U.S. has about 1.6 million miles of water and wastewater pipelines, with a major water main breaking every two minutes.

As those infrastructure needs grow, the investment fund expects private-sector service companies like Mr. Rehab will pick up more work and need additional employees. So ISG is actively looking to acquire other service providers, Barr said.

“We intend to focus in areas east of the Mississippi and north of the Carolinas,” Barr said.

Mr. Rehab and Green Mountain will operate as standalone subsidiaries under ISG. They are the second and third deals done by Juniper.

Juniper made its first investment last year, in Washington-based Ballard Marine Construction, a general contractor serving a variety of clients in the hydropower, tunneling, industrial, nuclear, water utilities and marine industries worldwide

Juniper focuses on investments in U.S.-based companies with revenue between $10 million and $100 million. The firm’s primary focus is on controlling companies in the manufacturing, industrial products and services and infrastructure services sectors.

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