A Fort Worth-based holding company is dipping its investment toe in the water business.
Coltala Holdings, a firm focused on acquiring and scaling mission-critical service companies, on Aug. 27 launched its water division with the acquisition of Alsay Inc., one of the state’s oldest and largest water well drilling and service companies.
“We’re very excited about this business,” said Ralph Manning, co-founder and co-CEO of Coltala Holdings. “With the population growth and development in Texas — particularly the data centers — the water resources of the state are in demand, and there’s an increased dependence upon the groundwater.”
Like Coltala’s other investments in aerospace, health care and manufacturing, the work Coltala Water Holdings will focus on is complex but necessary to meet the state’s needs, Manning said.
“It takes a lot of skill. It takes a lot of engineering experience,” he said. “And there’s a tremendous amount of investment required in equipment. That really fits into the kind of businesses we invest in.”
Coltala Holdings operates in aerospace, health care, real estate and, now, water in more than 20 states.
The Alsay acquisition fits squarely with the firm’s essential services focus, said Edward Crawford, co-founder and co-CEO of Coltala, in a statement.
“As a Navy veteran and former Peace Corps member, I know how essential water is to community resilience,” he said. “This investment reflects our commitment to building great American companies that serve people and protect vital infrastructure.”
The acquisition comes just as the state pours investments in water projects to accommodate growth and development. That includes a constitutional amendment asking voters in November to allocate $20 billion for such needs over the next two decades.
Founded in 1960 and headquartered in Houston, Alsay has provided deep water well drilling, pump systems and water infrastructure services to municipalities, utilities and industrial clients across Texas. The company operates one of the largest fleets of drilling equipment in the state, company officials said.
During the past five years, Alsay, with the support of Lone Star Investment Advisors, more than doubled its size and earnings and built a backlog of projects exceeding $100 million.
Joe Slavik, president of Alsay, said Texas offers plenty of opportunity in the water business.
“This is a great business to get into and a lot of opportunity for people to make really good money,” he said. “Recruiting is one of the areas that is hard for us, and we’re trying to get the word out about it. It’s a growing business, but a lot of people don’t know about it or understand it.”
Alsay has about 150 full-time employees. It plans to open an office in North Texas and hire about 20 people for that location.
“We expect that office to grow,” said Slavik. “There’s a lot of demand there.”
Manning said new development is fueling much of Alsay’s growth, but aging wells that need maintenance or replacement also drives the business.
No price for the acquisition was announced. Coltala received support from financial partners Bank United, which served as senior lender, while Gladstone Capital, represented by Eric Maloy of Dallas, provided mezzanine financing and an equity co-investment.
Bob Francis is business editor for the Fort Worth Report. Contact him at bob.francis@fortworthreport.org.
At the Fort Worth Report, news decisions are made independently of our board members and financial supporters. Read more about our editorial independence policy here.
Related
Fort Worth Report is certified by the Journalism Trust Initiative for adhering to standards for ethical journalism.
Republish This Story
Republishing is free for noncommercial entities. Commercial entities are prohibited without a licensing agreement. Contact us for details.