Transaction overview
HKW, a US-based middle-market private equity firm, acquired Sepratech Liquid Solutions on July 14, 2025. The deal's value was not disclosed but involved HKW purchasing a 100% stake in the company. Sepratech is an industrial water and wastewater treatment service provider headquartered in Gonzales, Louisiana, with operational facilities in Willis, Texas, and Lake Charles, Louisiana.
Deal structure and financing
The financial terms of the transaction were undisclosed, including details on equity versus debt split and exact leverage metrics. Brookside Capital Partners and LongWater Capital Solutions provided the financing for the acquisition. Taft Stettinius & Hollister LLP served as the legal advisor to HKW during the deal. The seller retained no stake in Sepratech post-closing, and there were no lock-up terms or IPO optionality mentioned in the announcement.
Strategic context
HKW's rationale for acquiring Sepratech was to accelerate its growth while maintaining high regulatory, safety, and environmental standards. With HKW’s expertise in supporting mission critical engineered solution manufacturers and distributors, this acquisition aligns with their core strategy of fostering rapid expansion and operational excellence. Patrick Troy, an industry veteran who joined as CEO at closing, emphasized the importance of adhering to stringent quality and customer satisfaction requirements.
For Sepratech, divesting to HKW provides strategic benefits such as access to capital for further growth initiatives in marketing, sales, and operations. Zach Nichols, a HKW operating executive previously with ProAct Services (another HKW investment), joined the team at closing to provide additional support for these goals. The transaction underscores both companies' commitment to maintaining high standards while driving operational improvements.
Regulatory path
The acquisition of Sepratech by HKW did not require review from US regulators, as it was below the thresholds requiring filing with the Department of Justice and Federal Trade Commission under Hart-Scott-Rodino (HSR) Act rules. Given the deal’s undisclosed size and focus on a specialized sector in Louisiana and Texas, there were no significant regulatory hurdles or remedies required for its completion.