Private equity-backed Aqua Terra Water Management has acquired Integrity Custom Processing Inc. and assets from Kasten Energy Inc. giving the buyer access to British Columbia's wastewater disposal market.
Integrity provides services to the water management companies in British Columbia. Aqua Terra will also pick up a salt water disposal facility from Kasten Energy, located near Lloydmister, Alberta. Terms of the transactions were not disclosed.
Aqua Terra operates salt water disposal facilities. The company is backed by New York private equity firm Bregal Partners. Bregal has $500 million in committed capital that is funded by a sixth-generation family foundation. The firm invests in energy services, consumer, food, retail and health care companies.
In January, Bregal bought assets from Ceiba Energy Services Inc. and Phyllis Disposal to add to Aqua Terra. Bregal formed Aqua Terra in November, immediately adding-on Four Winds Energy Services Ltd., which operates water disposal facilities in Canada.
Canaccord Genuity acted as Aqua Terra's financial adviser, while Stikeman Elliott LLP provided legal advice.
Investors have been flowing into the energy and oil and gas services industries for a while. In July, KKR & Co. (NYSE: KKR) and Riverstone Holdings agreed to create an oil and natural gas producer called Trinity River Energy LLC. Also in July, Kleinfelder Inc. agreed to buy Hood Engineering & Technical Services, which provides construction management services to oil and gas companies.