I Squared to buy Milestone Environmental from SK Capital in energy waste deal
What's the deal? I Squared CapitalDealroom has a profile for this one. Try Dealroom →, a global infrastructure investor, has agreed to acquire Milestone Environmental from SK Capital PartnersDealroom has a profile for this one. Try Dealroom →. Milestone, based in Houston, provides waste management for the energy and industrial sectors through its flagship fund. Terms were not disclosed.
What does Milestone do? Founded in 2014, it owns and operates 15 permitted disposal facilities for oil and gas drilling, completion, and production waste. Its sites sit across active US energy basins, including the Permian's Delaware and Midland sub-basins, the Eagle Ford, and the Haynesville.
Why now? The Permian Basin drives a large share of domestic and global oil and gas supply, keeping demand high for compliant waste infrastructure. Milestone is the leading independent slurry injection provider across those basins, using a patented process to dispose of complex oilfield waste.
What's the endgame? Milestone has begun expanding into industrial waste management, applying its regulatory expertise and geological capabilities to a wider range of hazardous and non-hazardous streams. I Squared says it will partner with management to build on that platform.
"Energy waste management is an essential but often underappreciated part of the energy value chain," said Gautam Bhandari, managing partner and chief investment officer at I Squared. He added that Milestone is "well positioned to benefit from the long-term fundamentals supporting U.S. energy production and reindustrialization."
What changes hands? SK Capital held Milestone for three years, repositioning it by adding capabilities and entering new markets. "We've repositioned the Company by enhancing its market leadership, adding new capabilities and expanding into new markets," said Jack Norris, a managing director at SK Capital.
Founder and chief executive officer Gabriel Rio, who has spent twelve years building the platform, called I Squared "an ideal capital partner" that "deeply understands both the energy and environmental infrastructure sectors."
The signal: The deal underlines investor appetite for the unglamorous infrastructure that keeps US oil and gas flowing. As producers face tighter environmental rules, control of permitted disposal capacity — and the option to extend it into industrial waste — is becoming a durable bet on American energy output.
Read more: Associated Press
Image credit: BlueShift 12
