Sciens Water's Strategic Move in Water Infrastructure
Sciens Water Opportunities Management LLC, dedicated to enhancing water management, has announced the sale of The CROM Corporation, a key player in water solutions, to Frontenac. This transition represents a significant milestone for both companies, particularly CROM, known for its innovative water storage solutions.
Significance of the Sale
CROM, based in Gainesville, FL, has made its mark as a leading designer, manufacturer, and installer of water storage facilities. With the largest installed base of prestressed concrete tanks in the U.S., they have been pivotal in restoring and maintaining essential water infrastructure nationwide. Since Sciens Water's acquisition in 2020, CROM’s services have expanded dramatically, realizing a three-fold growth.
Company Expansion and Growth
This remarkable growth was made possible through a strategic focus on expanding CROM's services. Investments in business development and enhanced operational systems have positioned CROM for continued success. They launched new offerings, including the innovative watertight tensioned straight wall tanks, known as CROM². These advancements have allowed the company to diversify its business model and meet the surging demand for water infrastructure services.
Impact on Communities
During Sciens Water's stewardship, CROM played a vital role in improving the water and sanitation infrastructure for approximately 7.2 million individuals across the southeastern U.S. This achievement underscores the company’s commitment to fostering healthier communities through improved water accessibility.
Leadership Insights
Daniel Standen, Managing Partner at Sciens Water, expressed pride in the collaboration with CROM’s management team. He noted how this partnership has facilitated growth and supported CROM’s legacy within the water industry. With a keen eye on future market trends, Standen believes CROM is well-equipped to navigate its next chapter amidst increasing demand for effective water storage and services.
Reflections from CROM's Leadership
Bobby Oyenarte, CEO of CROM, echoed the sentiment of gratitude towards Sciens Water. He emphasized the shared journey that unlocked significant value and growth for CROM, highlighting the expertise brought by Sciens in addressing critical water infrastructure problems.
Advisory and Legal Support
The sale was supported by comprehensive advisory services, with Raymond James acting as the financial advisor to CROM. Additionally, Morgan, Lewis & Bockius LLP served as legal counsel, ensuring that all aspects of the transaction were handled with professionalism and care.
About Sciens Water
Sciens Water is an affiliate of Sciens Capital Management, founded in 1994. The company exclusively invests in the U.S. water sector, focusing on areas such as utilities and infrastructure related to water storage and treatment. Their specialized approach enables them to partner with entrepreneurs to tackle real-world challenges within the sector while generating significant impact and value.
About CROM
CROM stands out as a crucial provider of water infrastructure solutions, specializing in the design and construction of prestressed concrete tanks and related services vital to water and wastewater facilities. Their commitment to innovation keeps them at the forefront of the industry, ensuring they meet current and future demands.
About Frontenac
Frontenac is a respected private equity firm based in Chicago, focusing on lower middle market investment opportunities within various industries. Their unique CEO1ST® approach fosters strong partnerships with operating leaders, aligning interests to encourage market leadership through strategic acquisitions.
Frequently Asked Questions
What does the sale of CROM to Frontenac signify?
The sale indicates a strategic shift aimed at leveraging further growth and market opportunities in water infrastructure solutions.
How has CROM evolved since its acquisition by Sciens Water?
Since the acquisition, CROM has expanded its services significantly, tripling its operations while launching new innovative water storage solutions.
What impact has CROM had on communities?
CROM has improved essential water infrastructure for approximately 7.2 million people, enhancing access to clean water and sanitation services.
Who were the advisors in this transaction?
Raymond James served as financial advisor, and Morgan, Lewis & Bockius LLP acted as legal counsel for both CROM and Sciens Water.
What are Sciens Water’s investment focuses?
Sciens Water invests in various aspects of the water sector, including utilities, transmission and distribution infrastructure, treatment, and recycling.
