HOUSTON, Aug. 25, 2020 — Ara Partners, a private equity firm specializing in decarbonization investments, today announced a majority investment in Path Environmental Technology, LLC (“Path”), an industrial services provider headquartered in Houston, Texas. Financial terms of the transaction were not disclosed.
Path, founded in 2014 and formerly known as Sweat Energy Services, cleans above ground storage tanks (“ASTs”) and rail tank cars using proprietary methods to reduce greenhouse gas emissions, waste generation and hazardous man hours. Path’s differentiated service offering—unique technologies coupled with highly trained personnel—serves the agriculture, chemical, food & beverage, petrochemical, pulp & paper and refining industries throughout North America.
In addition to acquiring a majority interest, Ara Partners invested additional capital to further develop Path’s technology and expand its team and geographic footprint. Sweat Equity Partners, Path’s previous controlling shareholder, maintains a significant equity interest in Path. Following the completion of the investment, Path closed on a new credit facility with Texas Capital Bank.
“Our investment in Path reflects the decarbonizing, technology-enabled approach that the company brings to its blue-chip customer base,” said Troy Thacker, Managing Partner of Ara Partners. “Path’s differentiated approach utilizes automation to virtually eliminate the environmental impacts of carbon emissions and hazardous waste, while substantially limiting the hazardous condition labor requirements, creating an unmatched competitive advantage. We are excited to join Andrew White, Kelan McElduff, Barry Gordon and the employees of Path to build the platform, both organically and through strategic acquisitions.”
Andrew White, Chairman/CEO of Path and founder of Sweat Equity Partners, said, “Under the leadership of President Kelan McElduff and Chief Operating Officer Barry Gordon, Path has delivered a novel approach to the traditionally emissions-intensive and hazardous processes of cleaning ASTs and rail tank cars. We are excited to partner with Ara Partners, a leading industrial decarbonization private equity firm, to continue to implement our approach which meaningfully reduces both emissions and landfill waste and improves personnel safety.”
“Path has successfully developed methodologies for cleaning ASTs without risking our personnel in hazardous confined space environments,” explained McElduff. “Controlling emissions and minimizing waste generation (and its subsequent handling) are inherent to reducing personnel safety risk associated with tank cleaning.”
Path’s Board of Directors now includes members of Ara Partners, Mr. White and Michael Knigin, CEO of Apache Industrial Services.
Foley & Lardner LLP provided legal counsel to Ara Partners in association with the transaction and Andrews Myers, PC represented Sweat Equity Partners.
About Path Environmental Technology, LLC
Path is a technology-enabled, decarbonizing industrial services platform. Path cleans storage tanks and rail tank cars using proprietary methods which reduce emissions, landfill waste and man-hours. For more information on Path, please visit www.PathEnviro.com.
About Ara Partners
Ara Partners is a private equity firm specializing in industrial decarbonization investments. Ara Partners invests in the industrial & manufacturing, chemicals & materials, energy efficiency & green fuels and food & agriculture sectors, seeking to build businesses that are focused on sustainability and ESG principles. For more information on Ara Partners, please visit www.AraPartners.com.