Vortex Companies expands its presence with Tri-State Utilities acquisition

In a significant move to enhance its portfolio of trenchless infrastructure solutions, Vortex Companies, LLC (Vortex) has acquired Virginia-based Tri-State Utilities and its affiliate, Pipe Vision. The acquisition, finalized through National Underground Group, Inc., a portfolio company of ORIX Capital Partners, bolsters Vortex’s position as a leader in cost-effective renewal solutions for aging underground infrastructure across the United States.

This acquisition underscores Vortex’s commitment to offering innovative subsurface infrastructure services that address the growing demand for sustainable, efficient water and sewer rehabilitation technologies.

What Does This Acquisition Mean for Vortex Companies?

The purchase of Tri-State Utilities and Pipe Vision aligns with Vortex Companies’ mission to expand its trenchless infrastructure solutions, particularly in the Mid-Atlantic and Southeastern United States. With over 35 years of experience, Tri-State Utilities has become a trusted name in subsurface infrastructure services, specialising in advanced techniques like cured-in-place pipe (CIPP) lining, pipe cleaning, smoke and dye testing, and sewer system evaluation surveys (SSES).

Mike Vellano, CEO of Vortex Companies, shared that Tri-State Utilities has long been a valued customer of Vortex’s liner and repair materials. He emphasized that the acquisition enhances Vortex’s ability to deliver industry-leading infrastructure renewal solutions to its customers.

“Strategically and operationally, this acquisition strengthens our focus on offering diverse and effective trenchless technologies to meet the unique needs of our clients,” Vellano explained, reflecting the operational and geographic synergies created by the partnership.

How Does Tri-State Utilities Fit into the Bigger Picture?

Tri-State Utilities has built a reputation for delivering reliable, high-quality trenchless infrastructure solutions, even during economic fluctuations. Its ability to provide timely and cost-efficient services has earned the trust of municipalities and commercial clients throughout the region.

The company offers a range of trenchless technologies, including:

Sanitary and storm sewer CIPP lining

Closed-circuit television (CCTV) pipe inspection

Emergency pipe cleaning services

Segmental trenchless spot repairs

Long-term sewer system evaluation

This breadth of expertise will complement Vortex’s existing capabilities, including robotic sewer systems, polymeric coatings, and high-speed drain cleaning tools, to create a comprehensive solution for customers facing challenges with aging underground infrastructure.

The Addition of Pipe Vision

As part of this acquisition, Pipe Vision brings specialised expertise in advanced pipe cleaning services and pipe inspections, further enhancing Vortex’s capacity to address subsurface infrastructure challenges. Founded in 2010 and headquartered in Richmond, Virginia, Pipe Vision has consistently delivered excellent service and technical expertise to clients throughout the Mid-Atlantic and Southeastern regions.

The Strategic Importance of Trenchless Infrastructure Solutions

The acquisition comes at a time when governments and private entities are increasingly focused on addressing the risks associated with aging underground infrastructure. These risks, including leaks, collapses, and inefficiencies, are a growing concern for urban and suburban communities alike.

Ram Vela, Senior Vice President of Corporate Development at Vortex, explained that acquiring Tri-State Utilities and Pipe Vision aligns with Vortex’s strategy of identifying and integrating accretive businesses that share its commitment to excellence. “This acquisition reflects our dedication to scaling our platform with high-performing companies that bring added value to our customers,” Vela said.

ORIX Capital Partners, which previously invested in National Underground, expressed confidence in Vortex as the ideal partner for Tri-State Utilities’ future growth. Michael Khutorsky, Managing Director at ORIX, stated that preserving aging underground infrastructure remains a priority for their portfolio strategy.

Financial Details and Market Impact

While the financial terms of the acquisition were not disclosed, the transaction represents a substantial step forward for Vortex Companies. By integrating Tri-State Utilities and Pipe Vision, Vortex aims to strengthen its position as a leading provider of cost-effective trenchless infrastructure solutions.

What’s Next for Vortex Companies?

This acquisition builds on Vortex’s recent expansion efforts, including its purchase of Premier Pipe USA in August 2024. Premier Pipe USA, based in Troy, Ohio, is a leading supplier of high-performance cured-in-place pipe (CIPP) products and has overseen the installation of over 30 million feet of liner globally.

Vortex’s growing portfolio of trenchless infrastructure solutions is designed to meet the evolving demands of municipal, industrial, and commercial clients. With a global presence spanning 25 locations, Vortex continues to focus on delivering innovative technologies and unparalleled service to its customers.

Why This Matters

The acquisition of Tri-State Utilities and Pipe Vision positions Vortex Companies as a critical player in the effort to modernise America’s water and sewer systems. As infrastructure challenges mount, the integration of these companies’ expertise ensures that Vortex is equipped to offer scalable and sustainable solutions for the future.