HIG Capital Sells Water Equipment Provider to Berkshire Partners

Miami-based investment firm HIG Capital has divested United Flow Technologies to Berkshire Partners while maintaining a minority ownership position, the companies disclosed. The deal represents a significant milestone for the water and wastewater equipment platform HIG Capital launched just four years ago.

United Flow Technologies operates across municipal and industrial water treatment markets, supplying process equipment, pumps, flow control systems, and automation technology. The Irving, Texas-based company works with cities, utilities, and industrial facilities that require reliable infrastructure for water purification and wastewater management.

HIG Capital, founded in 1993 by Sami Mnaymneh and Tony Tamer, established United Flow Technologies in 2021 through a buy-and-build strategy targeting fragmented regional equipment distributors. The firm saw opportunity in consolidating suppliers that could offer comprehensive solutions rather than single product lines.

“HIG’s vision has enabled us to execute a growth playbook and strengthen every aspect of our operations—from our people to our processes,” said Matt Hart, who leads United Flow Technologies as chief executive. “Together, we’ve expanded UFT’s reach and impact across key markets.”

Consolidation Strategy Delivers Growth 

The platform’s development under HIG Capital centered on integrating complementary businesses that enhanced technical capabilities and geographic coverage. United Flow Technologies completed several acquisitions during the holding period, each adding specialized expertise or access to new customer segments.

Water infrastructure spending has increased as municipalities confront aging systems and stricter environmental standards. Federal funding through programs like the Infrastructure Investment and Jobs Act has accelerated replacement cycles for outdated equipment, benefiting suppliers positioned to serve both planning and implementation phases.

United Flow Technologies differentiated itself by combining product sales with technical support and service capabilities. This model generates recurring revenue from maintenance contracts while building relationships that lead to equipment upgrades and expansion projects.

Rahul Vinnakota, managing director at HIG Capital, highlighted the partnership with management. “We have been proud to support management to build a national leader in the water and wastewater sector, and had an outstanding partnership with Matt and the broader UFT organization,” he said.

HIG Capital oversees approximately $70 billion across debt and equity strategies focused on middle-market companies. The firm’s approach emphasizes operational improvements and strategic acquisitions rather than financial engineering.

Partial Exit Reflects Confidence 

Retaining a minority stake in United Flow Technologies deviates from typical private equity exit strategies but reflects HIG Capital’s assessment of continued growth potential. The structure allows Berkshire Partners to control strategic decisions while keeping HIG Capital involved as an experienced investor familiar with the sector’s dynamics.

Berkshire Partners has backed numerous industrial and infrastructure businesses, bringing expertise in scaling companies through both organic growth and acquisitions. The Boston firm’s involvement suggests United Flow Technologies may pursue additional transactions to expand its market position.

“We look forward to continuing our involvement as a supportive partner in the company’s next phase,” Vinnakota added. HIG Capital declined to specify the size of its retained stake or the transaction’s financial terms.

Harris Williams and Solomon Partners advised HIG Capital and United Flow Technologies on the deal, with King & Spalding providing legal representation. The advisory team’s involvement indicates a competitive sale process that likely attracted multiple bidders.

The transaction follows other recent portfolio moves by HIG Capital across infrastructure and essential services. Last month, the firm completed its acquisition of Shore Excursions Group, a provider of tours for cruise passengers. In November, HIG Capital invested in GT Independence, which administers self-directed Medicaid home care programs across 18 states.

These deals share common characteristics: recurring revenue models, fragmented markets amenable to consolidation, and essential services with predictable demand patterns. Water infrastructure fits this profile particularly well given regulatory requirements and the critical nature of treatment systems.

Infrastructure Investments Gain Momentum 

HIG Capital’s infrastructure division has also been active internationally. In August, the firm sold EYSA Group, a Spanish mobility and parking platform, to Tikehau Investment Management after more than doubling the business’s earnings during its ownership period.

The firm has expanded its real estate and infrastructure teams in recent years, adding personnel in European markets where it sees consolidation opportunities. HIG Capital now operates from 19 offices across North America, Europe, Latin America, and Asia.

For United Flow Technologies, the transition to Berkshire Partners ownership comes during a period of strong market fundamentals. Water utilities face mounting pressure to upgrade treatment capabilities while managing costs, creating demand for suppliers that can deliver integrated solutions with reliable service.

Hart emphasized continuity despite the ownership change. “We are thrilled HIG will remain a minority investor, highlighting their conviction in our long-term growth opportunities,” he said.

The retention of HIG Capital as a co-investor may also benefit Berkshire Partners by providing access to the firm’s network of portfolio companies and industry relationships. Such arrangements can facilitate information sharing and commercial partnerships that accelerate growth.

United Flow Technologies did not disclose revenue or employee figures, though the company operates across multiple states with a national sales and service network. The business competes with both large multinational equipment manufacturers and regional distributors, positioning itself as a provider that combines breadth of product offerings with localized support.