Select Environmental Services M&A Transactions
SESPE Consulting Acquired by Trinity Consultants
- Trinity Consultants, a Texas-based provider of environmental, health, safety, and engineering consulting services backed by Levine Leichtman Capital Partners, acquired SESPE Consulting, a California-based provider of environmental compliance and permitting services
- The acquisition expands Trinity’s targeted expansion into the California market and into air & water quality services
- The transaction marks the 11th acquisition by Trinity under the ownership of Levine Leichtman
Inframark Acquired by New Mountain Capital
- Inframark, a Pennsylvania-based provider of outsourced water infrastructure operations and management services, has been acquired by New Mountain Capital; Harris Williams served as the exclusive advisor to Inframark
- Inframark serves more than 400 clients across the U.S. and manages more than 7,000 miles of wastewater collection and water distribution networks
- The investment provides Inframark with access to capital that enhances the company’s capacity for growth
Seminole Septic Acquired by Wind River Environmental
- Wind River Environmental, a Massachusetts-based provider of maintenance, repair, and management services for non-hazardous liquid waste systems, has acquired Seminole Septic, a Florida-based provider of pumping, disposal, and emergency services for septic tanks and grease traps
- The transaction is expected to enhance Wind River’s presence in the growing Florida market
- Wind River is owned by Gryphon Investors, and this acquisition marks the third under their ownership
JBR Environmental Acquired by VLS Recovery Services
- VLS Recovery Services, a Texas-based provider of waste management, railcar & barge cleaning, and repair services, has acquired JBR Environmental Services, a South Carolina-based provider of waste management and industrial cleaning services
- The transaction expands VLS’s geographic footprint in the southeastern region of the U.S.
- Backed by Aurora Capital Partners, this acquisition marks the fifth acquisition under their ownership
What We’re Reading
Companies Brace Themselves for New ESG Regulations Under Biden
- Companies are bracing for further regulation under the incoming Biden administration. One area that could affect a number of industries: potential new requirements related to diversity, carbon emissions, and other types of sustainability metrics.
- President-elect Joe Biden campaigned on requiring companies to provide more detail on environmental risks and greenhouse-gas emissions as part of a broader agenda to combat climate change.
- One of the biggest areas to be addressed is disclosure. Under the Trump administration, the Securities and Exchange Commission stymied calls for tighter ESG regulations. Currently, public companies must disclose ESG information only if they deem it material to investors’ perception of the business.
Biden Cancels Keystone XL Pipeline and Rejoins Paris Climate Agreement
- In a burst of climate orders during his first days in office, President Biden canceled the Keystone XL Pipeline and rejoined the Paris Climate Agreement through a series of executive orders. The President also ordered federal agencies to begin the process of reinstating more than 100 environmental regulations that were weakened or reversed under the Trump administration.
- The moves represent a first step in the Biden administration’s plans to tackle the climate crisis, and foreign leaders hailed the moves as a powerful signal that the United States intends to restart its efforts to lower pollution levels and to restore the international order upended by the Trump administration.
- The lengthy legal process of undoing Trump’s environmental rollbacks and replacing them with new regulations could take many years and is likely to be strewn with political land mines if Republicans or business groups fight against them.
General Motors Plans to Exclusively Offer Electric Vehicles by 2035
- General Motors wants to end production of all diesel- and gasoline-powered cars, trucks and SUVs by 2035 and shift its entire new fleet to electric vehicles as part of a broader plan to become carbon neutral by 2040.
- The company plans to use 100% renewable energy to power its U.S. facilities by 2030 and global facilities by 2035 — five years ahead of a previously announced goal. For several years, GM has touted a guiding “triple zero vision,” including a future with zero emissions through electric vehicles, but it never announced a time frame.
- The company characterized its 2035 EV goal as an “aspiration,” citing that regulations, infrastructure, and other factors need to come together for the plan to be achieved.
Dow to Spend Millions to Clean Up Air Pollution
- Dow Chemical Company, and two of its subsidiaries, will spend $294M to curb air pollution from four petrochemical plants in Louisiana and Texas under a proposed settlement with environmental regulators.
- The EPA alleges that the facilities failed to properly operate and monitor flares when burning off waste gases, violating the Clean Air Act. Under the proposed settlement, Dow and its subsidiaries will reduce flaring and improve combustion of waste gases at the plants.
- Dow began upgrading its flares in 2015 and expects to finish this work in 2025. The millions it is pouring into this effort are from its operating capital expenditure budget.
For more information, please see Harris Williams’ recent publication “Opportunities in Environmental Services,” which provides a detailed breakdown of the industry, recent trends, and market observations.
Harris Williams Overview
Environmental Services Focus Areas
- Solid Waste Mgmt. & Recycling
- Diversified Waste Mgmt. & Recycling
- Hazardous Waste / Industrial Cleaning
- Specialty Services
- Testing & Analytical Services
- Remediation, Consulting, & Engineering
- Resource Recovery & E-Waste
- Water Equipment & Chemicals
- Water Utilities & Services
Select HW Transactions
Leading provider of outsourced water infrastructure operations and management services
Comprehensive provider of infrastructure and environmental testing, inspection, & consulting services
Industry-leading environmental, health, safety, & quality software provider offering a unified SaaS platform
Largest vertically integrated provider of grease trap and related services
Leading provider of specialized cleaning solutions & wastewater treatment
Market-leading provider of closed-loop total oil management solutions
National provider of post-construction stormwater management services
North America’s largest provider of industrial cleaning and environmental services to the energy, industrial, & utility end markets
Comprehensive provider of environmental consulting services across the globe, with a focus on intelligent solutions
Provider of comprehensive contaminated material services across a wide variety of end markets