PurgeRite Has Completed a Majority Recapitalization With Milton Street
HOUSTON, January 23, 2024 – GulfStar Group ("GulfStar") is pleased to announce the majority recapitalization of Purge Rite, LLC (“PurgeRite” or the “Company”) with Milton Street Capital, LLC (“Milton Street”). GulfStar served as the exclusive financial advisor to PurgeRite throughout the transaction, which closed in the fourth quarter of last year.
Founded in 2008, PurgeRite is the leading provider of mechanical flushing and filtration services for water-based HVAC and geothermal systems. The Company ensures these systems operate with maximum efficiency and reliability across a variety of critical environments, including data centers, semiconductor fabrication, K-12 schools, universities, medical centers and other advanced manufacturing operations. Clean, efficient systems reduce power and water usage, ongoing maintenance and downtime, delivering meaningful savings and peace of mind to facility owners and operators.
"We were introduced to GulfStar by another company with which they had completed a very successful transaction," said Russell Buras, CEO of PurgeRite. "When we first met Colt and his team, we had a great connection and knew they had the transactional and strategic expertise we needed to go to the market and generate a successful outcome. Throughout the process, I was very impressed by their genuine interest in, and deep understanding for, our business. Their advice on strategy, timing and preparation, along with their guidance throughout the transaction was invaluable as we evaluated our options."
Buras added: "Our partnership with Milton Street will enable us to expand our geographic reach and increase our capacity while maintaining the flexibility and service levels our customers have come to know and expect. With Milton Street’s support, we are making substantial investments in people, equipment, and technology."
"We are excited to partner with Russell and his team to support their growth," said Kevin Crook, partner at Milton Street. "The Company’s technical expertise, culture, and passion for the solutions they provide are unmatched. We look forward to helping them capitalize on the growing demand for their services."
Milton Street is a Houston-based private equity firm focused on control investments in North American manufacturing, rental, distribution and service companies with EBITDA typically ranging from $5 million to $20 million. The firm seeks opportunities to create value and transform companies into sustainably great businesses through active engagement in strategy, human capital and commercial and operational improvements.
"We are grateful to Russell and the entire PurgeRite team for the opportunity to work with them on this important transaction," said Colt Luedde, managing director of GulfStar. "We were fortunate to have a front row seat as PurgeRite executed its growth strategy and carved out its market leading position in the rapidly growing mission critical mechanical flushing sector. The Company’s technical expertise and its unwavering commitment to successful project execution made this a highly attractive investment opportunity for many parties. In the end, it was clear that Milton Street proved to be the best partner to support PurgeRite’s continued growth and increasing demand for their services."
The GulfStar team was led by Managing Director Colt Luedde and Senior Vice President Alex Pette with support from Associate Jack Brady and Analysts Zack Mays and Alan Sheppard.
For more information, please email cluedde@gulfstargroup.com or call 713-300-2015.
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 strategic advisory services to companies with revenues 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.
