DALLAS, April 24, 2026 /PRNewswire/ -- The Sterling Group Foundation Fund (the "Foundation Fund"), an operationally focused lower middle market private equity firm, today announced the acquisition of The Scruggs Companies ("Scruggs"), a provider of critical products and services to the municipal water and wastewater industry across the Southern and Midwestern United States.

Headquartered in Houston, Texas, Scruggs operates two verticals in Texas, Oklahoma, Kansas, Missouri, and Arkansas. First, the company provides essential flow control products – spanning valves, actuators, and automation components – through tenured partnerships with leading equipment manufacturers. Additionally, Scruggs performs repair and maintenance services for water and wastewater infrastructure and components. Through its differentiated product and service offering, Scruggs supports its municipal water and wastewater customers through the lifecycle of construction, expansion, and ongoing maintenance of essential water infrastructure.

"Scruggs has established a strong reputation with customers in the municipal flow control market, and we believe there is meaningful opportunity to accelerate growth through operational improvements and service line expansion," said Luke Bateman, Managing Director of the Foundation Fund. "We look forward to partnering with the Scruggs team to execute on this next phase of growth with a shared vision of building a scaled water infrastructure solutions platform."

Scruggs is a portfolio company of the Foundation Fund. The Foundation Fund aims to leverage The Sterling Group's operational capabilities and experience in the industrial sector to "set the foundation" for growth at lower middle market companies. Other Foundation Fund portfolio companies include Premier Tire and Service, Compost 360, Russell Landscaping, OGD Overhead Garage Door, and AGS American Glass Services.

Scruggs was previously a portfolio company of Rox Capital Partners, a Texas-based private equity firm. BMO Capital Markets Corp. served as exclusive financial advisor to The Sterling Group in connection with the transaction.

About The Sterling Group Foundation Fund

Founded in 1982, The Sterling Group is a private equity and private credit investment firm that targets investments in basic manufacturing, distribution, and industrial services companies. Typical enterprise values of these companies at initial formation range from $100 million to $1 billion. Sterling has sponsored the buyout of 78 platform companies and numerous add-on acquisitions for a total transaction value of over $27 billion. Sterling currently has approximately $9.0 billion of assets under management. For further information, please visit www.sterling-group.com.

Past performance is no guarantee of future results and all investments are subject to loss.

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SOURCE The Sterling Group, L.P.