Seal Beach-based Baker Tanks Inc. has picked up a Torrance-based maker of air and water treatment gear.
Baker, which rents huge tanks to oil refineries and chemical plants among others, paid an undisclosed sum for Cameron Environmental Inc.
The lure: Cameron’s water and air filtration technology, which Baker can add to its 21,000-gallon tanks.
“Sometimes the customer needs to discharge or reuse water (held in the tanks),” said David Igata, Baker’s director of business development. “What we were missing was the (filtration) know-how.”
Cameron owner Mehrzad Emanuel is staying on as Baker’s vice president of filtration. Cameron has about 25 workers at its main operations in Torrance and Vacaville. Baker has 400 workers and expects sales of some $110 million this year, up from about $100 million a year ago.
It’s been a busy year for Baker. Private equity firm Code Hennessy & Simmons LLC bought Baker for $275 million in January from Chicago’s Pritzker family. Blackstone Group LP and Goldman Sachs Capital Partners reportedly contributed $77.5 million in the deal.
Anthony “Tony” Pritzker stepped down as Baker’s chief executive after the sale. Bryan Livingston now runs the company.
Baker has 40 U.S. locations, mostly in the West. Baker also has operations in Mexico and Canada.
It’s not unusual for Baker to rent 100 tanks to a customer at a time. Tanks typically go for $35 to $45 a day.
The company delivers and sets up the tanks, which can hold water or hazardous liquids. Baker also rents pumps to get the liquid in and out of the tanks.
Last year, Baker made three buys and expects to pick up more companies in the next few years, Igata said. It plans to seek other niche companies that add to its pump and filtration product lines, he said.
Possible targets include makers of safety products such as respirators and goggles, according to Igata. Baker also is eyeing safety consulting businesses.
Baker’s main competitor is Rain For Rent in Bakersfield. A report by Moody’s Investors Service Inc. said Baker has posted “uneven growth” in recent years, but has 26% of its storage tank market.
“Revenues in fiscal 2003 were essentially flat, as weaknesses in the economy, particularly in the chemical industry, led to weak demand for polyethylene tanks and to a lesser extent its steel tanks,” Moody’s said.
Code Hennessy manages about $1.5 billion in four funds.
