eTech Has Completed a Majority Recapitalization with KLH Capital
HOUSTON, September 18, 2023 – GulfStar Group ("GulfStar") is pleased to announce the majority recapitalization of eTech Environmental & Safety Solutions, Inc. (“eTech” or the “Company”), a portfolio company of Taglich Private Equity, LLC (“Taglich” or “TPE”), by KLH Capital (“KLH”). GulfStar served as the exclusive financial advisor to eTech and Taglich throughout the transaction, which closed on September 1, 2023.
Based in Odessa, Texas, and established in 2003, eTech is a leading environmental remediation business providing regulatory mandated environmental consulting, soil sampling & testing, remediation, waste management, and long-term compliance services to a large base of blue-chip customers in the upstream, midstream, government, and industrial end markets throughout the Permian Basin. With over 125 skilled environmental technicians and professionals in the field, a top-tier safety record, and a robust portfolio of Master Service Agreements, the Company’s services allow them to work in a diverse array of environmental disciplines, including soil and groundwater testing, remediation, asbestos, mold and lead consulting, federal and state permitting assistance, and a broad range of compliance support. The partnership with KLH will enable the Company to accelerate its growth and continue to expand its service offerings throughout the United States.
“I am excited for the opportunity that this partnership will provide for our employees and their families, our customers, and our niche industry,” said Shane Estep, CEO of eTech. “We’re blessed to be growing quickly and have an incredible amount of opportunity at our fingertips. We appreciated GulfStar’s guidance and industry expertise in helping us find a financial partner to harness eTech’s full potential.”
Brandon Wilson, eTech’s COO, added: “With KLH’s operational team and their expertise within our type of business, we will be able to increase our capacity, grow our footprint, and broaden our services for our customers.”
Founded in 2005, KLH is a private equity firm serving management teams of lower middle-market companies in the specialty services, value-added distribution, and niche manufacturing industries. The firm makes majority and minority equity investments in U.S.-based businesses to support the company’s growth plans, provide ownership opportunities for key managers, and allow owners to harvest the value in their businesses. Since its founding, KLH Capital has raised $935 million.
“We are very pleased to have had the opportunity to represent eTech and Taglich on this assignment,” said Brian Lobo, managing director of GulfStar. “eTech has a leading presence in a complex and highly regulated industry. With KLH’s support, the Company is well positioned to broaden its services and capabilities as well as expand to new end markets and geographies.”
The GulfStar team was led by Managing Directors Brian Lobo and Ben Stanton with support from Analyst Billy Conner.
About Taglich Private Equity
TPE is a New York-based, value-oriented financial sponsor that invests in lower middle market companies in the consumer products, manufacturing and business services sectors. TPE specializes in recapitalizations, management buyouts and majority equity investments and has completed transactions totaling over $650 million since 2001. These investments are funded primarily with capital provided by Taglich Brothers, Inc., a full-service brokerage firm managing capital in both public and private investments.
About GulfStar Group
GulfStar is a leading middle market investment bank headquartered in Houston. GulfStar specializes in providing merger and acquisition advisory services, institutional private placements of equity and debt, and general corporate finance advisory services to companies with revenues or enterprise values generally ranging from $25 million to $350 million. Since its formation in 1990, GulfStar has completed more than 750 transactions in 38 states and 18 foreign countries across a variety of industries.