Sterling Buys Scruggs to Scale US Water Solutions

The Sterling Group acquires Scruggs and Neil Technical Services, building a scaled platform for US municipal water and wastewater flow control

28 Apr 2026

Private equity firm The Sterling Group has acquired The Scruggs Companies from Rox Capital Partners, forming a regional platform for municipal water and wastewater services in the United States. The deal also absorbs Neil Technical Services, a firm that provides maintenance and repair support for water infrastructure systems.

The combined business, based in Houston, serves municipal clients across the southern and midwestern United States. Scruggs operates two main lines: the supply of flow control products, including valves and automation components, and the provision of long-term maintenance services. Both are classed as non-discretionary, meaning municipalities have limited ability to defer them.

Luke Bateman, managing director of the Foundation Fund at Sterling, said the company has built "a strong reputation in flow control," adding that the partnership would "accelerate growth through operational improvements and expanded service lines." The existing management team will remain in place.

The acquisition reflects a broader trend of private capital moving into essential infrastructure services as US water systems face mounting pressure to upgrade ageing equipment. Municipalities, many of which lack in-house technical capacity, are increasingly contracting out specialist work to third-party providers.

Whether this model keeps service costs manageable for public utilities remains an open question. Advocates argue that scaled private platforms can deliver expertise that smaller municipalities could not otherwise afford. Critics contend that private ownership of essential services can create upward pressure on costs over time.

Sterling has not disclosed the financial terms of the transaction. The long-term scale of the platform will depend, in part, on whether the group can extend its geographic footprint beyond its current regional base.