Decarbonization-Focused PE Investor Ara Partners Takes Majority Stake in Path Environmental Technology
Industrial decarbonization-focused private equity investor Ara Partners announced that it has made a majority investment in Path Environmental Technology, citing the environmental and safety benefits and capabilities of the industrial service provider’s offerings. Ara acquired the stake from Sweat Equity Partners, who maintains a significant interest in Path. Ara also announced that in addition to acquiring the stake in Path, it invested additional capital into the company to fund further development of Path’s technology and the expansion of its team and geographic footprint.
Path, 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. The company’s services are used by the agriculture, chemical, food & beverage, petrochemical, pulp & paper and refining industries throughout North America.
Troy Thacker, Managing Partner of Ara Partners, said:
“Our investment in Path reflects the decarbonizing, technology-enabled approach that the company brings to its blue-chip customer base. 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 President Kelan McElduff added:
“Path has successfully developed methodologies for cleaning ASTs without risking our personnel in hazardous confined space environments. Controlling emissions and minimizing waste generation (and its subsequent handling) are inherent to reducing personnel safety risk associated with tank cleaning.”