Stellus Capital Management Backs ICV’s Asbestos Abatement Investment with Unitranch Financing

Stellus Capital Management Provides Financing Support for ICV Partners

On February 18, 2025, Stellus Capital Management, LLC, announced the provision of senior debt financing along with an equity co-investment to support ICV Partners' (ICV) acquisition of Environmental Remedies, LLC (ERI), a premier asbestos abatement service provider operating in California. This initiative is aligned with Stellus' strategy to finance essential service providers catering to non-discretionary needs, particularly in sectors where demand is consistently driven by natural disasters such as fire and water damage.

Founded in 2004, Environmental Remedies has carved out a niche for itself within the industry, servicing multiple sectors including remediation companies, insurers, and individual homeowners. Their consistent focus on high-quality asbestos abatement operations has established them as a trusted partner in addressing critical environmental and safety concerns.

Jermaine Warren, Managing Director at ICV, expressed enthusiasm over the partnership with Stellus, stating, "ERI's focus on restoration and insurance markets perfectly aligns with our investment strategy, which emphasizes support for essential services. We appreciate Stellus’ backing and are excited about our combined efforts to explore both organic and strategic growth opportunities in the future." Wilfully addressing the growing demand for asbestos removal services provides both companies a unique opportunity to enhance their market presence.

Doug Bollermann, Managing Director at Stellus, articulated his eagerness as well, noting, "We are excited to collaborate with ICV on this transaction. Our aim is to fortify the ERI team as they look to optimize their operational capabilities and expand their market share through geographic expansion and acquisitions. This partnership signifies an important step towards upholding safety standards while enhancing accessibility to high-quality environmental services."

The move comes amid increasing awareness concerning the health risks associated with asbestos exposure, which has led to a heightened need for specialized remediation services. Given the persistent challenge of aging infrastructure throughout California and its susceptibility to environmental hazards, businesses like ERI play a vital role in ensuring community safety and restoring livability in affected areas.

Stellus Capital Management's strategic commitment to financing companies that provide essential services will not only support Environmental Remedies in its existing operations but also enable potential expansions. This includes exploring new markets and increasing the range of services they offer, which may include further integration into disaster recovery operations.

The investment in ERI showcases Stellus’ ongoing dedication to empowering companies that are making a tangible difference in public safety and environmental health. Through proactive financing strategies and industry partnerships, Stellus aims to contribute significantly to the growth of responsible, community-oriented businesses that provide vital services in today’s economy. As the environmental sector continues to evolve, Stellus and ICV are positioned to capitalize on opportunities to meet the rising demand for effective asbestos abatement solutions.

In conclusion, the financing decision is not merely a transactional engagement; it reflects both companies' commitment to sustainable business practices and the importance of addressing pressing public health issues head-on. For ERI, this partnership promises not only growth in capabilities but also a stronger foothold in the competitive landscape of environmental remediation services, which ultimately benefits communities across California. This collaboration is expected to yield significant outcomes, focusing on operational excellence and strategic growth in a mission-critical industry.