Private equity firm Apollo says funds under its management have acquired a majority interest in Composite Advanced Technologies Inc. (CATEC), a provider of compressed natural gas (CNG), renewable natural gas (RNG) and hydrogen transportation and storage solutions in the U.S.
Founded in 2014 and based in Houston, CATEC manufactures large-format Type IV cylinders that facilitate the use of natural gas and hydrogen across a wide variety of industry applications when mounted on mobile trailers or used in stationary applications.
As penetration of natural gas continues and the hydrogen economy grows, logistics are expected be a constraint, and CATEC is an early mover in providing safe and efficient solutions for a wide range of end uses, Apollo says.
“CATEC’s proprietary manufacturing capabilities are critical to supporting the growing market demand to reduce carbon emissions in ‘hard-to-decarbonize’ industries,” comments Apollo Partner Scott Browning. “The CATEC team has built an impressive business, which we believe can scale to become a one-stop-shop platform for serving the equipment needs of the compressed gas value chain through various expansion initiatives.”
TerraNova Capital served as financial advisor and Baker Botts acted as legal counsel to CATEC. Vinson & Elkins LLP acted as legal counsel to Apollo.