O2 Invests in and Partners with Steffl Drilling & Pump

MINNEAPOLIS--(BUSINESS WIRE)--O2 Investment Partners (www.o2investment.com) announced today that it has partnered with Steffl Drilling & Pump (“Steffl” or the “Company”) (www.waterwelldrilling.com) and the Steffl family, to support the company’s rapid growth. Terms of the investment were not disclosed.

Steffl Drilling & Pump was founded in 1978 in Minnesota by Mike Steffl and Roxy Steffl. In 2018, their son, Sam Steffl, joined the business, continuing the family’s leadership and accelerating the Company’s growth trajectory. Steffl is a leading provider of water well drilling and repair services committed to quality, service, and reliability for municipal, agricultural, commercial, and residential customers. The Company services the full lifecycle of water wells including repair, replacement, maintenance, and new well installation. In addition, the Company services PFAS-related remediation and geothermal projects. Since inception, Steffl has developed a reputation for quality workmanship, rapid responsiveness, and technical project and equipment expertise.

“The Steffl Drilling & Pump team is thrilled to partner with O2 at an exciting point in the Company’s evolution as we work to build the leading nationwide water well drilling and repair services platform,” said Sam Steffl, CEO. “In a supply-constrained industry that supports critical infrastructure, O2’s resources and expertise will enable us to expand our capabilities and broaden our reach to service and install water wells for additional customers, while continuing to deliver a premium experience to our existing customer base. This partnership will accelerate both organic and acquisition-driven growth across adjacent geographies, end markets, and service lines, allowing us to continue providing the most essential resource, water.”

William Laffrey at O2 commented, “We are delighted to partner with Sam Steffl at Steffl Drilling & Pump. It is rare to find an operator with his blend of industry knowledge and execution capabilities, and we are confident we are backing a best-in-class team and platform that is well equipped to service the water well drilling industry. Steffl is a premier regional leader in an essential, non-discretionary category within a highly fragmented industry, and is well positioned for accelerating growth. We are proud to launch this new platform alongside Sam, his family, and the team at Steffl, whose strong reputation and proven execution capabilities uniquely position Steffl to rapidly scale.”

Craig-Hallum served as the financial advisor to Steffl Drilling & Pump. Financing for the transaction was provided by CIFC Direct Lending.

About Steffl Drilling & Pump
Headquartered in Willmar, MN, and founded in 1978, Steffl Drilling & Pump is a leading provider of water well drilling and repair services committed to quality, service, and reliability for municipal, agricultural, commercial, and residential customers across the Upper Midwest. Utilizing advanced drilling equipment and technologies to minimize disruption and service critical infrastructure, the Company offers a comprehensive suite of services, including repair, replacement, maintenance, and new well installation. Additional information is available at www.waterwelldrilling.com.

About O2 Investment Partners
O2 Investment Partners is a Midwestern-based private equity firm that seeks to acquire majority interests in lower middle market B2B services, technology, and select industrial companies. The firm invests in businesses with earnings growth potential and a clear path to the creation of shareholder value. O2 invests with a view toward partnering with management to build and grow the business and take it to its next stage of development. This requires not only a clear vision and strategic plan to create shareholder value, but a close partnership and alignment of interest with management. Additional information is available at www.o2investment.com.