Walnut-based water treatment company Economic Alternatives Inc. has expanded to the East Coast with its acquisition of Clearwater Industries, a water treatment company based in Shelton, Connecticut.
Economic Alternatives, which does business as EAI Water, was founded in 1986; its technology has focused on chemical, membrane and disinfectant methods for treating water. It has served clients in the health care/pharmaceutical, manufacturing, education, agricultural and energy sectors.
EAI Water has gradually expanded to Arizona, Nevada, Utah, Washington, and Ohio. But this acquisition marks its first entry into the East Coast market.
Clearwater Industries, which was founded in 1992, has built up an industrial client base in several Northeastern states. Now that it has been acquired by EAI Water, Clearwater is still expected to keep its headquarters in Connecticut and its chief executive, Jim Grieder, is expected to remain at the helm of the operation.
“Choosing partners wisely is key to long-term success in the water treatment industry,” Michael Warady, EAI Water’s chief executive, said in the company’s announcement. “We look forward to building on Clearwater’s outstanding legacy and delivering exceptional value to our clients through integrated, innovative water treatment solutions.”
Warady declined to give the purchase price for the Clearwater Industries acquisition but said the goal of the acquisition is to grow Clearwater’s client base and, by extension, EAI Water’s national reach.
Economic Alternatives Inc. is a wholly owned subsidiary of Little Tokyo-based Sylmar Group, which purchased the company in 2021. Warady said that Sylmar Group was founded in 2019 by himself and a business partner – whom he did not name – with a mission to roll up “legacy companies” in the water industry. He said Sylmar has five other companies besides Economic Alternatives in its portfolio, including General Pump Co., in San Dimas, which does groundwater pumping.
“At Sylmar Group, we’re trying to build a holistic water company comprised of legacy – or older – companies in the water industry,” Warady said.
With Sylmar Group being private, Warady said he could not disclose revenue for the individual portfolio companies. But he did supply a $90 million projected 2024 revenue figure for the combined revenue of all six portfolio companies in Sylmar Group, including EAI Water.
