CITCO Water's Southern Surge Targets Aging Infrastructure

📊 Key Data
  • $3.1 billion in wastewater infrastructure needs over 15 years in Alabama
  • $19.7 billion required for Georgia's drinking water systems over two decades
  • $30 billion in infrastructure needs for Florida's water systems
🎯 Expert Consensus

Experts would likely conclude that CITCO Water's strategic acquisitions position the company to effectively address the Southeast's critical infrastructure challenges through consolidated expertise and advanced treatment technologies.

2 days ago
CITCO Water's Southern Surge Targets Aging Infrastructure

CITCO Water's Southern Surge Targets Aging Infrastructure

HUNTINGTON, WV – March 31, 2026 – In a significant strategic move, CITCO Water today announced the acquisition of two Alabama-based companies, Pump & Process Equipment, Inc. and Legacy Environmental. The deal marks a major expansion for the West Virginia-based water and wastewater solutions provider, extending its operational footprint into the critical Southeastern markets of Alabama, Georgia, and Florida and positioning the company to address the region's pressing infrastructure needs.

For over 90 years, CITCO Water has operated with a mission to manage the complete water cycle, from source to consumer and back again. This acquisition propels the family-operated company, which has been under the leadership of the Morrison family since 1958, from a strong regional player in the Mid-Atlantic and Appalachia to a formidable force in the burgeoning Southeast.

A Strategic Push into the Southeast

The acquisitions are a direct result of a growth strategy accelerated by CITCO Water's 2023 partnership with Trivest Partners, a private investment firm known for fueling the expansion of family- and founder-led businesses. This move signals a deliberate push to build what the company calls "the premier regional platform for waterworks and wastewater solutions."

The two acquired firms bring distinct and complementary expertise. Pump & Process Equipment, Inc. (PPEI), headquartered in Birmingham, Alabama, has been a trusted manufacturer's representative since its founding in 1992. With a strong reputation among engineers and municipalities, PPEI specializes in providing high-quality pumping systems, intelligent controls, and process equipment across Alabama, Georgia, and the Florida panhandle.

Meanwhile, Legacy Environmental of Leeds, Alabama, adds a crucial layer of advanced treatment technology. Legacy specializes in designing and supplying innovative packaged wastewater treatment systems, including Membrane Bioreactor (MBR) technology, filtration systems, clarifiers, and lift stations. Their expertise in creating custom, high-performance solutions for municipal and industrial clients fills a vital niche in an era of increasingly complex water treatment challenges.

By integrating these two companies, CITCO Water is not just acquiring new territory but also absorbing decades of specialized technical knowledge, established manufacturer partnerships, and deep-rooted customer relationships across the Southeast.

Bolstering Solutions for Ailing Infrastructure

The timing of CITCO's expansion is critical, as it aligns with the immense and well-documented infrastructure challenges facing the Southeastern United States. Recent reports from the American Society of Civil Engineers (ASCE) paint a stark picture of the region's needs.

  • In Alabama, the state's 2022 Infrastructure Report Card issued a 'D' grade for wastewater systems, citing nearly $3.1 billion in needs over the next 15 years. Its drinking water infrastructure, graded at 'C-', requires an estimated $12.2 billion in investment.

  • Georgia faces similar hurdles. Despite an overall 'C+' grade in its 2024 report, the state's wastewater systems received a 'C-'. The investment required for its drinking water systems has ballooned to $19.7 billion over two decades, driven by rapid population growth.

  • Even Florida, which boasts a relatively high 'C+' overall grade, is not immune. The state's wastewater and drinking water systems, graded 'C+' and 'B-' respectively, are under constant strain from a population that grows by the equivalent of an Orlando-sized city each year. These systems face over $30 billion in needs and increasing vulnerability to storms and sea-level rise.

The technologies brought by Legacy Environmental and PPEI are directly applicable to these problems. Packaged treatment systems can offer cost-effective, scalable solutions for smaller communities struggling with outdated facilities. Advanced filtration and pumping systems are essential for ensuring water quality and reliability in the face of population growth and environmental pressures. This acquisition equips CITCO to offer tangible solutions to the multi-billion-dollar infrastructure deficit plaguing the region.

Riding a Wave of Industry Consolidation

CITCO's move is also a reflection of a broader trend within the fragmented U.S. water and wastewater industry. Across the country, strategic mergers and acquisitions, often fueled by private equity investment, are reshaping the competitive landscape. Companies are seeking to consolidate services to create comprehensive, one-stop-shop platforms that can offer end-to-end solutions—from pipes and pumps to chemical treatments and smart metering.

This consolidation is driven by the sheer scale of the challenge. Aging infrastructure, tightening environmental regulations, and the impacts of climate change demand a level of investment and expertise that smaller, specialized firms may struggle to provide alone. By combining forces, companies like CITCO can achieve greater efficiency, broaden their technological portfolio, and deliver more integrated solutions to municipal and industrial clients.

The involvement of private equity firms like Trivest Partners is a key enabler of this trend. These investors are drawn to the water sector's stability and long-term growth potential, and they provide the capital necessary for established companies like CITCO to pursue ambitious acquisition strategies and accelerate their market penetration.

Integrating Expertise for a Comprehensive Future

The true value of this deal lies in the synergy between the three organizations. CITCO brings its extensive portfolio of services, including chemical solutions, smart meter technology, and repair services. PPEI contributes its deep relationships with leading equipment manufacturers and its expertise in system design. Legacy Environmental adds cutting-edge, packaged treatment solutions.

Together, they form a platform capable of supporting customers throughout the entire water lifecycle. In a statement, CITCO Water CEO Jeff Morrison highlighted this integrated vision.

“This is an exciting moment for CITCO Water and for the customers we serve,” said Morrison. “Pump & Process Equipment and Legacy Environmental are exceptional organizations with talented teams, strong industry relationships, and deep technical expertise. Their capabilities align perfectly with CITCO’s mission of delivering complete solutions across the entire water cycle. By bringing these organizations together, we are building a stronger platform that allows us to serve customers with more technology, more expertise, and a broader portfolio of solutions.”

As the company moves to integrate its new partners, the focus will be on leveraging this expanded toolkit to provide more robust and innovative services. Morrison added that the partnership positions CITCO to become the “premier regional platform for waterworks and wastewater solutions.” By combining established regional leadership with targeted technological expertise, CITCO Water is not just expanding its map but redefining the scope of what a comprehensive water solutions partner can be for the communities it serves.

Event: Corporate Finance

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