Argosy Invests in AUC Group, L.P.
On October 16, 2015, Argosy acquired a controlling ownership interest in AUC Group, L.P.
Founded in 1970 as TEC Industries, the Company is a leading provider of wastewater treatment solutions to municipalities, Municipal Utility Districts, and corporations primarily in the state of Texas. AUC provides a turnkey service offering composed of design, fabrication, installation, and financing of modular wastewater treatment facilities. The Company offers financing options to its customers including construction sales, installment sales, and leasing. Solutions are tailored to the capacity needs of municipalities and developers who find AUC’s modular solutions to be more cost effective.
The Company’s modular design and ability to scale the capacity of the plant to match customer needs provides a unique alternative to the traditional permanent facility. By partnering with AUC, developers and municipalities can efficiently handle their wastewater treatment needs and minimize up-front capital outlays.
Argosy partnered with NewSpring Capital, which provided subordinated debt as well as a significant equity co-investment. Community Banks of Colorado, a division of NBH Bank N.A., provided senior debt financing to support the acquisition as well as the Company’s future growth.
This is a platform investment for Argosy and in addition to maintaining its leadership position in the fast-growing Texas markets, AIP V and management are planning to expand the business into other states. The Company will be seeking opportunities for expansion through strategic acquisitions and green-field ventures into new geographic areas.