Baird BOS Advises Erosion Compliance on its Sale to Valor Environmental
Baird’s Business Owner Solutions (“BOS”) group recently advised Austin, TX-based Erosion Compliance (“EC” or the “Company”) on its recent sale to Valor Environmental (“VE”), a portfolio company of Clearwell Group (“Clearwell”), a FL-based family office and investment firm. The acquisition of EC provides immediate geographic expansion for VE as they add to their existing Southeastern presence and continue to build the leading environmental services and erosion control platform in the U.S.
Erosion Compliance installs and maintains silt fencing and other erosion control measures to residential construction sites in Austin, Houton, San Antonio, and Dallas, Texas. Howard Surratt, Founder and President, began exploring potential business transition options, including a majority recapitalization or sale of the Company given the growth and expansion of the business. Baird BOS met with Surratt and his team and discussed his primary goals and objectives of diversifying personal net worth and providing meaningful opportunities for key managers and employees. Baird BOS completed an initial market assessment of the business and determined a targeted process to credible financial and strategic buyers would yield an optimal result, while providing continued upside for Surratt and his team.
After a through process yielding multiple offers and structures, VE proved to be the best partner for EC given its synergies resulting from existing operations in the Southeast and a desire to expand into the Texas market. Surratt and management will continue in their leadership roles and retain some ownership alongside of Clearwell.
“Baird BOS ran an efficient, yet thorough, process that identified the best potential partner and were instrumental in getting the transaction closed,” commented Surratt.
Clearwell formed Valor Environmental through partnerships with Alpha EMC, HydroSpec, and Watkins Erosion Control, all Southeast U.S.-based erosion control companies. With the addition of Erosion Compliance to the portfolio, VE is now the largest erosion control company in the U.S.
About Baird Business Owner Solutions
Baird’s Business Owner Solutions team advises lower middle-market and emerging growth companies and their owners on business transition, valuation, and M&A transactions.