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Coltala Holdings, a Fort Worth-based firm committed to acquiring and scaling mission-critical service companies, on Wednesday announced the launch of Coltala Water Holdings with the acquisition of Alsay, Inc., one of Texas’ oldest and largest water well drilling and service companies.
Founded in 1960 and based in Houston, Alsay has spent more than four decades delivering deep water well drilling, pump systems, and water infrastructure services to municipalities, utilities, and industrial clients across Texas. The company operates one of the state’s largest fleets of drilling equipment and is led by a supervisory team with over 200 years of combined experience.
The acquisition comes as Texas faces surging demand for clean, reliable water amid one of the fastest-growing populations in the nation. Gov. Greg Abbott has emphasized long-term water infrastructure investment, and Coltala Holdings sees Alsay as a key partner in advancing that mission.
“The demands that are being placed on our Texas water supply are substantial and there's going to be an important role for the next 20 to 30 years for companies like Alsay, to be providing a solution to that problem so that we don't run out of water,” said Ralph Manning, co-founder and co-CEO of Coltala Holdings.
“This is exactly the kind of company Coltala was built to support — legacy-rich, mission-critical, and positioned for smart growth.”
The launch of Coltala Water Holdings extends Coltala’s “mission and margin” strategy — acquiring and scaling essential service businesses that create jobs and deliver long-term value. Coltala operates in more than 20 states across aerospace, healthcare, real estate, and, now, water. Edward Crawford is Manning’s partner as co-founder and co-CEO. Manning and Crawford were Entrepreneur of Excellence award winners in 2024.
The deal was backed by BankUnited as senior lender and Gladstone Capital, represented by Eric Maloy of Dallas, which provided mezzanine financing and an equity co-investment.
Over the past five years, Alsay — supported by Lone Star Advisors (LSA) — has more than doubled in size and earnings, built a backlog exceeding $100 million, and achieved a 25% compound annual growth rate.
Water is a scarce resource across the state, but particularly in North Texas. DFW is projected to become the third-largest metro in the U.S. by 2028.
Water was a top legislative priority in the 2025 session and heading to Texas voters this November is a referendum to amend the state constitution dedicating $1 billion annually from state sales and use taxes to the Texas Water Fund through 2047.
If passed, it would mark the largest water investment in Texas history. In addition to the long-term commitment, lawmakers also approved a $2.5 billion one-time investment from the budget surplus to accelerate projects even before the constitutional amendment takes effect.
The money would be used for companies like Alsay to undertake new water supply projects, as well as for infrastructure repairs.
Without some mitigating action, water shortages could cost Texas up to $100 billion in economic losses and hundreds of thousands of jobs, according to analyses. Reliable water supply is more than just about utility bills. It underpins business growth, competitiveness, and prosperity.
“The demands that are being placed on our Texas water supply are substantial and there's going to be an important role for the next 20 to 30 years for companies like Alsay to be providing a solution to that problem so that we don't run out of water,” Manning said.
“That's mission critical. That's what we were immediately attracted to and the opportunity to try to be part of that problem solving function.”
Sixty percent of the water supply in Texas comes from the ground. The rest comes from the lakes and reservoirs.
One key strategy the state is employing to expand the water supply is brackish groundwater desalination. Alsay is deeply involved with this. Brackish water is saltier than freshwater but not as salty as seawater. It can’t be used without treatment, but it’s less expensive to desalinate than seawater.
There’s about three-billion-acre feet of brackish water below us, said Joe Slavik, president of Alsay. One acre foot is about 326,000 gallons of water.
Alsay began in 1960 in Florida as a small residential irrigation company. Recognizing the rising demand for municipal and industrial well services in Texas, the company relocated its headquarters to the Houston area to better serve the market. As business expanded statewide, Alsay added a San Antonio office in 2000.
Slavik called joining Coltala “an exciting new chapter for Alsay.”
“Their focus on operational excellence and purpose-driven growth aligns with our values and sets us up for continued success,” said Slavik, who emphasized that the company is hiring. “This is an excellent industry to get into for that type of person who doesn't mind working with our hands and getting out and getting dirty and muddy and hot.”
Alsay has drilled wells all over the world, from Houston to Saudi Arabia. Its primary market is the Houston metro. Its secondary market is Austin and San Antonio.
“We definitely see North Texas as the next leg of growth and we'd really like to have that three-legged stool,” Manning said.
Moving into a market requires a logistical commitment of dedicated people and equipment to that geographic area and a general base of operations.
“That’s on the drawing board,” Manning said.