Funds managed by private investment firm Apollo have acquired a majority interest in Composite Advanced Technologies (CATEC), a provider of compressed natural gas (CNG), renewable natural gas (RNG) and hydrogen transportation and storage solutions in the United States.
CATEC’s products and services help its customers transition away from carbon-intensive fossil fuels towards cleaner alternatives.
Founded in 2014 and based in Houston, CATEC manufactures large format Type IV cylinders that facilitates the use of natural gas and hydrogen across a wide variety of industry applications when mounted on mobile trailers or used in stationary applications.
Apollo intend to invest further capital behind the company to establish a gaseous equipment manufacturing and services platform with capabilities and customer offerings to support expansion in the high-growth hydrogen transport and storage market.
The transaction is in line with Apollo’s commitment to invest in or lend to companies supporting the energy transition. Last year, the firm launched its Sustainable Investing Platform, which targets to deploy $50bn in clean energy and climate capital by 2027 and sees the opportunity to deploy more than $100bn by 2030.
TerraNova Capital served as financial advisor and Baker Botts acted as legal counsel to CATEC. Vinson & Elkins acted as legal counsel to the Apollo funds.