The Sterling Group Foundation Fund has acquired Scruggs, a Houston-based provider of critical products and services to the municipal water and wastewater industry. The company operates two business verticals across Texas, Oklahoma, Kansas, Missouri, and Arkansas, supplying essential flow control products and performing repair and maintenance services for water and wastewater infrastructure. Scruggs was previously a portfolio company of Rox Capital Partners.

The acquisition adds to The Sterling Group's portfolio of industrial and infrastructure-focused investments. Municipal water and wastewater services represent a defensive sector with recurring revenue characteristics, as municipalities require ongoing maintenance and replacement of aging infrastructure. The deal reflects continued consolidation in the fragmented water infrastructure services market, where private equity firms have shown growing interest in utility-related companies serving municipal customers with essential services.

Financial terms of the transaction were not disclosed. The acquisition underscores the strategic value of companies providing essential water infrastructure products and services in the midcontinent United States.