Apollo funds affiliate CATEC buys Kelley Leasing Partners (NYSE:APO)

Composite Advanced Technologies (CATEC), a provider of compressed natural gas and affiliate of Apollo-managed funds, has acquired Kelley Leasing Partners, a compressed gas and cryogenic liquid transportation equipment leasing company, Apollo Global Management (NYSE:APO) and CATEC said on Tuesday.

In connection with the acquisition, Apollo (APO) funds and CATEC have rolled out a compressed gas platform, called Hydria, that provides equipment and services supporting the CNG, RNG, helium and hydrogen value chain with over-the-road transport, storage and leasing capabilities. Hydria is mostly owned by Apollo funds.

The Kelley takeover provides Hydria with enhanced equipment scale and diversification, as well as additional manufacturing capabilities, re-testing and maintenance services.

Long-time Apollo (APO) Operating Partner Scott Prince has been appointed CEO of Hydria.

“We believe Hydria can become a differentiated service provider supporting the end-to-end equipment needs of the compressed gas value chain,” said Prince, who has 10 years’ experience with Apollo (APO) affiliates across energy transition growth projects.

The move underscores Apollo’s (APO) commitment to investing in or lending to companies supporting the energy transition. Last year, the firm launched its Sustainable Investing Platform, which has a target deployment of $50B in clean energy and climate capital by 2027 and sees the opportunity to deploy over $100B by 2030.