The sustainable investing team at Goldman Sachs Alternatives, a $500 billion fund, is acquiring Atlas-SSI Holdings, a North American supplier of water management equipment that helps protect water assets and ecosystems. The terms of the deal, announced this week, were not disclosed.
Atlas-SSI designs, manufactures and services customized screens, gates and barriers that serve as the first line of defense for facilities that utilize water. The company said the transaction will position it “to expand and meet increased demand in the water sector by upgrading aged infrastructure, enabling industrial growth and providing enhanced resilience in the wake of water related stress.”
In a press release announcing the deal, Atlas-SSI said it intends to utilize the global network and resources of Goldman Sachs GS to further accelerate growth in the water sector, including expansion into new markets and broadening its offerings, while continuing to improve service to the Company’s customer base.
“This partnership enables Atlas-SSI to accelerate our mission of delivering innovative water management solutions that protect critical infrastructure and ecosystems. With Goldman Sachs’ support, we’ll expand our capabilities, enhance our technology leadership and continue to meet the critical and growing needs of our customers,” said Paul Lewis, CEO of Atlas-SSI.
Lewis pointed out that the municipal water sector is undergoing sizeable investment following decades of underinvestment, with the EPA estimating over $744 billion will be required over two decades to upgrade water infrastructure.
Two trends are driving the growth: Industrial manufacturing is poised to grow amid onshoring to manage supply and national security risks. And power demand from data centers and electrification is expected to expand buildout of power generation facilities, which often require significant access to water systems.
The trends will put further pressure on water systems and demand for Atlas-SSI solutions as an essential component in the functioning of the overall system, the company believes. The company’s products include intake screens, grates, barriers, buckets and grapples as well as other equipment used by industrial, utility, municipal and commercial customers.
Atlas-SSI’s products also remove plastics and other pollution from water while protecting aquatic life, and through their re-manufacturing segment, the company avoids carbon emissions by decreasing the use of virgin materials and contributes to reducing material waste.
“The company has built significant customer trust as one of the only end-to-end solutions providers in North America providing highly reliable equipment with 100% of manufacturing in the U.S. We believe Atlas-SSI is well positioned to capitalize on macro tailwinds by upgrading and servicing current systems to be more resilient and supporting new facility buildout,” said Jeff Possick of Goldman Sachs Alternatives.
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