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Apollo Investment Firm Acquires Leading Hydrogen Cylinder Manufacturer, CATEC

28 Aug 2023

In a strategic move to tap into the burgeoning green energy market, private equity firm Apollo has announced the acquisition of a majority stake in Composite Advanced Technologies Inc. (CATEC), a prominent player in the compressed natural gas (CNG), renewable natural gas (RNG), and hydrogen transportation and storage solutions sector in the United States.

CATEC's Trailblazing Journey Founded in 2014 and headquartered in Houston, CATEC has garnered recognition for its pioneering contributions to the industry. The company specializes in manufacturing large-format Type IV cylinders that play a pivotal role in facilitating the utilization of natural gas and hydrogen across various applications. These innovative cylinders are mounted on mobile trailers or employed in stationary setups, enabling seamless integration into different industries.

Addressing Challenges in the Green Energy Landscape With the increasing adoption of natural gas and the growing prominence of the hydrogen economy, efficient logistics have emerged as a critical concern. CATEC, recognizing this imperative, has taken proactive steps to provide safe and efficient solutions that cater to diverse end users. Apollo underscores CATEC's strategic advantage as an early entrant into this domain, poised to address the logistical challenges that accompany the expansion of eco-friendly energy sources.

Envisioning a Greener Future Apollo Partner Scott Browning emphasizes the significance of CATEC's proprietary manufacturing capabilities. These capabilities align with the pressing need to reduce carbon emissions, particularly in industries that pose challenges in terms of decarbonization. Browning envisions CATEC's potential to evolve into a comprehensive platform, serving the comprehensive needs of the compressed gas value chain through strategic expansion initiatives.

Synergy in Expertise The acquisition of CATEC marks a convergence of expertise and vision, as Apollo positions itself to harness the potential of green energy solutions. The firm's belief in CATEC's scalability highlights its commitment to fostering innovation and sustainability in the energy sector.

TerraNova Capital played a pivotal role as a financial advisor in this strategic move, while Baker Botts provided legal counsel to CATEC. The legal counsel to Apollo was expertly handled by Vinson & Elkins LLP, further solidifying the alignment of all stakeholders in propelling CATEC's journey toward a greener, more efficient energy landscape.

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