Azuria Acquires Waterline, Deepening Bet on Trenchless Water Tech

NEW YORK, NY – February 26, 2026 – In a significant move that underscores the growing importance of modernizing America's water infrastructure, Azuria Water Solutions has acquired Waterline Renewal Technologies. The deal, announced today, sees private equity firm Behrman Capital exiting its investment in Waterline, transferring ownership to Azuria, which is itself a portfolio company of New Mountain Capital. Financial terms of the transaction were not disclosed.

The acquisition brings together two powerhouses in the trenchless technology sector, a field dedicated to repairing and rehabilitating aging water and sewer pipes from the inside, without the costly and disruptive process of excavation. Waterline, headquartered in Ottawa, Illinois, is a leading provider of engineered products and systems for this market, boasting a portfolio of well-known brands including Perma-Liner, LMK Technologies, and LightRay.

This transaction is more than a simple change of ownership; it represents a major consolidation within a market fueled by the urgent need to address the nation's deteriorating underground infrastructure. For Azuria, it's a strategic expansion of its service offerings, while for the private equity firms involved, it highlights a calculated playbook of investing in essential, resilient industries.

Private Equity's Playbook in Essential Infrastructure

The deal marks a successful exit for Behrman Capital, which nurtured Waterline through a period of significant growth, including two strategic add-on acquisitions that bolstered its market position. Grant Behrman, Managing Partner of Behrman Capital, commented on the successful partnership, stating, "We are proud to have contributed to Waterline's growth and successes... Waterline is well positioned to continue its market leading trajectory, and we wish Dave and the team the best of luck with their new partners."

For the buyer's backer, New Mountain Capital, the acquisition deepens a deliberate and substantial investment in the water services sector. New Mountain identified water infrastructure as a key area of focus through its multi-year, deep-dive sector initiatives, viewing companies like Azuria as "long-term, mission-critical assets." The firm’s confidence is so high that it has reportedly explored a potential $1 billion continuation fund to extend its investment horizon with Azuria, signaling a long-term commitment to building a dominant platform in the space.

This strategy is not limited to single acquisitions. New Mountain is pursuing a broader consolidation play, recently announcing a strategic merger between Azuria and Inframark, another of its portfolio companies specializing in water and wastewater services. The goal is to create a scaled, end-to-end provider capable of tackling the immense challenges of the water sector. The addition of Waterline's product-focused expertise is a critical piece of that puzzle.

The Silent Revolution Beneath Our Feet

The intense interest from private equity is a direct response to the powerful tailwinds driving the trenchless technology market. The global market for trenchless pipe rehabilitation was valued at approximately $4.4 billion in 2023 and is projected to surge to $7.3 billion by 2032, growing at a steady compound annual rate of nearly 6%. This growth is not speculative; it is built on a foundation of necessity.

Across the United States, a vast network of water and sewer pipes is reaching the end of its intended lifespan. The American Society of Civil Engineers (ASCE) has repeatedly warned of a massive investment gap, estimating that trillions are needed to modernize infrastructure. Traditionally, replacing these pipes meant digging long, disruptive trenches through roads, properties, and public spaces—a process that is slow, expensive, and carbon-intensive.

Trenchless technology offers a powerful alternative. Using methods like Cured-in-Place Pipe (CIPP), where a resin-saturated liner is inserted into an existing pipe and cured to form a new pipe within the old one, repairs can be made with minimal surface disruption. This approach is not only faster and often more cost-effective but also aligns with growing environmental regulations. The EPA's Clean Water Act and recent rulings on contaminants like PFAS put pressure on municipalities to maintain sealed, leak-free systems, making trenchless methods an ideal solution.

A Strategic Union of Capabilities

The true value of the Azuria-Waterline deal lies in the complementary nature of their offerings. Azuria has long been a leader in trenchless rehabilitation, primarily serving municipal clients with large-scale projects. The acquisition of Waterline, whose products are proudly made in the USA, immediately expands this capability into new and adjacent markets.

Waterline’s portfolio fills critical gaps and adds cutting-edge technology. Key brands include:

• Perma-Liner Industries: A North American leader in CIPP systems, with a strong presence in the residential and small-diameter commercial pipe market.
• LMK Technologies: A pioneer in lateral renewal, holding over 100 patents for its technology that seals the crucial connection between the main sewer line and the lateral pipes extending to homes and businesses.
• LightRay: A provider of market-leading UV curing technology, which uses ultraviolet light to cure liners faster and with a smaller equipment footprint than traditional hot water or steam methods.
• APM: A specialist in high-quality mortars and systems for the structural restoration of manholes and concrete pipes.

By integrating Waterline, Azuria becomes a more comprehensive, one-stop-shop solution. A municipality that already trusts Azuria for its mainline rehabilitation can now seamlessly access best-in-class technology for its lateral lines and manhole structures. This synergy strengthens Azuria's competitive position and enhances its ability to deliver holistic, long-term solutions for aging water systems.

Dave Williams, CEO of Waterline, expressed enthusiasm for the new chapter: "We are looking forward to the opportunities ahead within the Azuria family of brands." The press release confirmed that the Waterline teams will remain on board, ensuring a smooth integration and continuity of the expertise that made the company an attractive acquisition target.

This strategic combination of product innovation and service delivery scale is poised to accelerate the adoption of advanced rehabilitation methods across North America. For cities, utility managers, and taxpayers, the result is the promise of more resilient, reliable, and cost-effective water infrastructure built to last for the next generation, often without them ever knowing the work was done.