May 2019 Vol. 74 No. 5
Rehab Technology
Hoffman Southwest Acquires Tri-State Utilities
Hoffman Southwest (HSW), a portfolio company of ORIX Capital Partners, acquired Chesapeake, VA-based Tri-State Utilities Company.
Headquartered in Mission Viejo, Calif., HSW provides underground pipe inspection, trenchless pipe repair, excavation and cleaning services for municipal and utility customers, under the Pro-Pipe brand, operating eight West Coast branch locations.
Originally founded in 1947 as a Roto-Rooter franchisee, HSW today is the largest franchisee, providing plumbing, drain cleaning, trenchless pipe repair and water restoration services for commercial and residential customers.
Tri-State is a regional provider of trenchless repair, rehabilitation, inspection and other maintenance services to the municipal utility market and has long-term sewer and stormwater contracts with many of its utility customers. The company’s services include pipe cleaning, CCTV inspection, smoke and dye testing, grouting, HDPE slip-lining, and trenchless pipe lining. Tri-State’s fleet of equipment includes vacuum trucks, inspection rigs, boiler trucks, winches, backhoes and dump trucks.
Founded in 1990 by Steve McSweeney, Tri-State ownership passed to his sons, Andy and Joe McSweeney, in 2007, during a period of rapid expansion into the position as a market leader in trenchless utility rehabilitation throughout the Mid-Atlantic and Southeast.
Tri-State maintains long-term sewer and stormwater contracts with an enviable list of blue-chip customers. Additionally, the company has received recognition from its customers, vendors, and the broader industry for its exceptional safety credentials, technical expertise, increasingly diverse suite of services, and expanding geographic reach.
“We are thrilled to be partnering with the HSW team to expand the breadth of services we’re able to offer our valued customer base,” said Andy McSweeney, president. “When Joe and I began contemplating a possible ownership transition, it was critical that we find a group that shared our company’s values and commitment to growth.”
Joe McSweeney, Tri-State CEO added, “I have no doubt that HSW will help us build on the tremendous foundation that our father established, and Andy and I were fortunate enough to continue. As shareholders in the combined entity, we are looking forward to personally maintaining the level of service and responsiveness that our customers and vendors have come to expect from Tri-State.”
ORIX Capital Partners acquired Hoffman Southwest from Sterling Partners in February 2017. The financial services company invests between $75 million and $200 million of equity per transaction in North American middle-market companies that are active in the business services, infrastructure services and industrials sectors. •
FOR MORE INFORMATION
Hoffman Southwest, (949) 380-4161, hswcorp.com
Pro-Pipe, (800) 784-7473, pro-pipe.com
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