EBJ News: January 22, 2018: Environmental Industry Acquisitions

Environmental Industry Acquisitions


Tetra Tech to expand sustainable infrastructure practice with acquisition of Australia’s Norman Disney & Young
Tetra Tech Inc. (Pasadena, Calif.) is to acquire the sustainable infrastructure engineering design company Norman Disney & Young (NDY) for an undisclosed price. Established in 1959, NDY has offices throughout Australia, the Asia-Pacific region, the United Kingdom, and Canada. The firm, which has 700 professional staff, incorporates innovative technologies and solutions into designs, helping to create environments that use less energy, recycle water, and provide safe and sustainable infrastructure. “The addition of NDY to our sustainable infrastructure design practice will enable Tetra Tech to offer technically differentiated solutions to our commercial and government clients on a global scale,” said Dan Batrack, Tetra Tech’s chairman and CEO. “NDY will join our high-end design team in the United States to provide worldwide coverage and complementary client relationships.”

For more information on Environmental Industry Acquisitions, please visit our Environmental Consulting & Engineering Industry Review & M&A Trends page.


POWER Engineers elevates environmental practice with Zephyr Environmental
POWER Engineers Inc. (Hailey, Idaho) is positioned to offer more robust environmental consulting services to an expanded client base throughout the United States after acquiring Zephyr Environmental Corp. (Austin, Texas). Founded in 1994, Zephyr is a 75-person full-service environmental, health and safety (EHS) firm with offices in Austin, San Antonio and Houston, as well as York, Pa. and Baltimore, Md. Both firms serve the electric utility, oil and gas, refinery, and food processing industries. Maria Gou, Zephyr’s former CEO, will become director of POWER’s Air Quality and Related Environmental Services Business Unit. POWER Engineers is an employee-owned global consulting engineering firm with more than 2,400 employees and 40 offices. EFCG, an investment banking and financial consulting firm, initiated the transaction and served as POWER’s financial advisor.


Infrastructure demand boosts growth of global EC market in 2016
The global market for environmental consulting (EC) services climbed 3% in value during 2016 to reach $29.4 billion, according to Environment Analyst (EA, Shrewsbury, UK). It was the sector’s best performance since 2012 and followed 2.1% growth in 2015, EA reported. Growth among the top players was spurred by strong demand in Europe and M&A activity. Demand from infrastructure and development markets was strong particularly in Europe; other fast growing areas were water and waste management and environmental impact assessment related business. “The market finally looks to be emerging with real conviction from the oil & gas and natural resources-influenced downturn which has impacted the global environmental consulting sector since the height of the commodities super-cycle,” said Liz Trew, editorial director of EA’s Global Market Intelligence Service. The report is based on statistics from the sector’s 23 largest global companies which claim a 46% share of the EC services market and saw their aggregated EC revenues increase by 5.2% in 2016. Yet despite continued consolidation, only three players—AECOM, CH2M (now part of Jacobs) and Tetra Tech—hold an individual market share in excess of 5%, EA reported.


Environmental Industry Acquisitions | ATC acquires White Environmental Consulting
ATC Group Services (Lafayette, La.) has acquired White Environmental Consulting Inc. (WEC), a full-service environmental consulting firm with offices in Anchorage, Alaska and Honolulu, Hawaii. Founded in 1996, WEC specializes in environmental compliance, occupational health and safety, and management and abatement of industrial and environmental hazards. The WEC acquisition will expand ATC’s geographic reach and “allow ATC to more effectively and efficiently service our clients’ national projects in these remote geographies.”

For more information on Environmental Industry Acquisitions, please visit our Environmental Consulting & Engineering Industry Review & M&A Trends page.


PG&E breaks ground on EV charging network
One of the nation’s largest utilities, Pacific Gas and Electric (PG&E), has begun deploying approximately 7,500 electric vehicle (EV) charging stations in northern and central California, the Natural Resources Defense Council reported. Merced College, in the San Joaquin Valley, is working with the utility to install the first 12 charging ports in the EV Charge Network program. This program is in addition to the approximately 4,500 EV charging stations being installed by Southern California Edison and San Diego Gas & Electric. All three programs partner with independent EV charging companies to help customers install charging stations at workplaces, apartment complexes and other multi-family residential locations. By matching EV charging to hours of the day when wind and solar generation are plentiful, the program will also lower the costs of meeting California’s renewable energy goals by 2030. The California Public Utilities Commission is expected to rule in May 2018 on another $1 billion in full-scale programs to electrify transportation.


Environmental Industry Acquisitions | Terracon acquisition expands facilities services
Terracon (Olathe, Kansas) announced the expansion of its facilities services capabilities through the acquisition of Engineered Concepts (Greensboro, N.C.). Terracon will retain Engineered Concepts’ 10 employees. Founded in 1991, Engineered Concepts specializes in building enclosure, structural engineering, and facility investigation services, serving clients in the commercial, education, and government sectors throughout the Southeast and Mid-Atlantic regions. Terracon is an employee-owned consulting engineering firm that provides environmental, facilities, geotechnical, and materials services from more than 140 offices.

For more information on Environmental Industry Acquisitions, please visit our Environmental Consulting & Engineering Industry Review & M&A Trends page.


Environmental Industry Acquisitions | Hubbell to acquire Aclara for $1.1 billion
Hubbell Incorporated (Shelton, Conn.) has agreed to acquire Aclara Technologies LLC (St. Louis, Mo.), an affiliate of Sun Capital Partners Inc., for approximately $1.1 billion in an all-cash transaction. Aclara offers smart infrastructure solutions, advanced metering infrastructure, meters, software, and installation services to gas and electric utilities and will strengthen Hubbell Power Systems’ competitive position in utility markets. Aclara reported revenues of $500 million for the fiscal year ended September 30, 2017. Hubbell is a manufacturer of electrical and electronic products with 2016 revenues of $3.5 billion.

For more information on Environmental Industry Acquisitions, please visit our Environmental Consulting & Engineering Industry Review & M&A Trends page.


B&V report looks at role of “Big Data” across infrastructure systems
Advances in data analytics, electric transportation and next-generation communications systems will propel smart city development, according to the 2018 Strategic Directions: Smart Cities & Utilities Report by Black & Veatch (Overland Park, Kan.). The report examines how unique community partnerships and innovative financing approaches are driving smart city projects. For utilities, growing commitment to distributed energy resources (DER) is forcing modernization of the grid. The majority of utility respondents (76%) are developing grid modernization plans or have a strategy for electric distribution in place. Of the 24% not currently engaged in grid modernization, more than half are considering it. Concerns over cybersecurity and physical security are driving this trend, followed by a desire to improve grid reliability and efficiency. Regarding electric vehicles, last year marked “a monumental turning point,” with several auto companies announcing significant electrification plans: “Utilities need to start thinking now about how they are going to scale up power infrastructure to meet the increased demand for commercial and personal vehicles,” B&V concluded. Black & Veatch’s report is based on a survey of 644 participants from the municipal, utility and technology sectors.


Roux Associates posts business highlights for 2017
Roux Associates (Islandia, N.Y.), an environmental consulting and project management services company, has posted Year in Review highlights for 2017, led by the completion of phase II environmental site assessment and remedial investigation for an 85-acre commercial brownfields site destined to become part of a “megamall.” The company also provided environmental services for a solar field development on a brownfield site in New Jersey, and was awarded a project to remediate chlorinated volatile organic compound contamination at a 38-acre rail car maintenance facility in Kansas. Other highlights included investigation of three refined petroleum product infrastructure facilities subject to New Jersey’s Industrial Site Recovery Act requirements associated with the sale of assets. In addition, Roux founded an Economic & Complex Analytics practice last year to address environmental and product liability risks.


CECO Environmental announces energy technology contract
CECO Environmental Corp. (Dallas), a provider of air quality and fluid handling technology, announced a contract to provide a CECO Peerless SCR Exhaust System for what the company says will be the largest simple-cycle natural gas-fired turbine ever built in the United States. The size of the power plant will require custom engineering and scaling technologies to meet regulatory and environmental requirements, and the SCR system will help reduce NOx emissions by more than 90%. The contract includes custom engineering, analysis, design and modeling as well as sound acoustics, performance and construction of the exhaust system. The contract also includes provisions for CECO Technical Field Advisors to be onsite during the six-month fabrication period and the one-month start-up and commissioning period.


Ducon awarded APC contract to mitigate lithium mining impacts
Ducon Environmental Systems, a division of Ducon Technologies Inc. (New York, N.Y.), announced a major contract to supply air pollution control equipment designed to mitigate environmental impacts of mining for lithium to supply the lithium-ion battery market. Ducon will supply a combination of technologies, including advanced wet electrostatic precipitator equipment designed to remove sub-micron particles and acid mist from the exhaust flue gas generated while processing lithium-containing ores. “We see great business opportunities for our company in this emerging lithium-ion battery market which is presently valued at $24 billion and is expected to grow at a CAGR of 16.6% between by 2022,” said Aron Govil, chairman of the Ducon group of companies.


7-Eleven Canada extends environmental agreement with Parsons
Parsons (Pasadena, Calif.) has been awarded a multiyear extension of its environmental master services agreement with 7-Eleven Canada. With nearly 700 convenience stores and fuel retail outlets in Canada, 7-Eleven continues to pursue significant growth in the country. Parsons’ work for 7-Eleven Canada includes environmental site assessments, site remediation, hazardous materials surveys, fuel facility decommissioning, due diligence/acquisition support services, construction support, and other general environmental/remediation services.


Stantec becomes major infrastructure player in UK
Stantec (Edmonton, Canada) has announced the integration of MWH UK and MWH Treatment into its business, making Stantec an established player in the British infrastructure market. MWH UK and MWH Treatment will now be known as Stantec and Stantec Treatment, respectively. Stantec and MWH merged in 2016. “With infrastructure development high on the UK agenda, our ambition is to deploy our expertise across multiple sectors and be a part of the many new programs and projects due to begin over coming years,” said Cath Schefer, managing director of Stantec UK.

For more information on Environmental Industry Acquisitions, please visit our Environmental Consulting & Engineering Industry Review & M&A Trends page.


Cority and ERM form EHSQ alliance
Cority (Toronto, Canada), a provider of environmental, health, safety, and quality (EHSQ) software, has announced a partnership with Environmental Resources Management (ERM, London, UK). “Through collaboration and sharing of expertise, our work with Cority is helping our key clients harness the power of technology and data to achieve greater levels of HSE and operational performance,” said Shawn Doherty, global director of digital business and transformation at ERM.

For more information on Environmental Industry Acquisitions, please visit our Environmental Consulting & Engineering Industry Review & M&A Trends page.


ERM team links Ebola with deforestation
A team from Environmental Resources Management (ERM, London, UK), working through the ERM Foundation, has contributed to research on the relationship between deforestation and animal-to-human transmission of the Ebola virus. Findings have been published in Nature and could potentially be used to identify high-risk locations and mitigate the risk of outbreaks. ERM’s hypothesis is that increasingly fragmented forest landscapes may expand the interface between animals and humans and give rise to unusual assemblages of species within forest patches, creating more opportunities for animal-to-human transmission. ERM is investigating practical applications for the research, including ways to ensure that forest and biodiversity health are more comprehensively factored into development planning.


Ohio EPA sets record year for water quality in 2017
Ohio EPA issued more than $936 million in 2017 to finance projects that upgrade drinking water infrastructure and improve the quality of the state’s lakes, rivers and streams, a record for the state’s revolving loan programs. Improvements to wastewater infrastructure (which affect Ohio’s surface waters flowing into Lake Erie and the Ohio River) received $861 million in 2017; $258 million was awarded for projects to separate combined sewer overflows in the Lake Erie watershed; $65 million was directed toward improving Ohio’s public water systems; and $10 million was issued for wetlands restoration. “We were able to make this nearly billion dollar investment in water quality improvements because these funds are carefully managed, and we are meeting frequently with county commissioners and mayors to understand their community needs and build positive working relationships between state and local governments,” Ohio EPA Director Craig W. Butler said.


Policy uncertainty disrupts solar installations in U.S.
More than 2 gigawatts (GW) of solar photovoltaics (PV) were installed in the United States in the third quarter of 2017 despite higher prices across all market segments and major policy uncertainty, according to the latest U.S. Solar Market Insight report by GTM Research (Boston, Mass.) and the Solar Energy Industries Assn. (SEIA). It was the eighth consecutive quarter in which the solar industry added more than 2 GW. However, capacity additions represent a 51% drop compared to Q3 2016. “The solar industry is a resilient bunch, but this quarter shows us what happens when policy uncertainty becomes a disruptive factor: prices rise, supplies shift and the market reacts accordingly,” said Abigail Ross Hopper, SEIA’s president and CEO. “We urge President Trump to reject tariffs and allow solar to continue its amazing growth.” Solar PV prices have risen due to a tight global supply of modules and uncertainty around the Section 201 trade case awaiting a decision this month. GTM forecasts that 11.8 GWdc of new PV installations will come on-line in 2017, down 22% from a record-breaking 2016.


Environmental Industry Acquisitions | Stallion acquires Basin Wastewater Solutions
Stallion Oilfield Services Ltd. (Houston), a private equity backed energy service company, has acquired Basin Wastewater Solutions, LLC (Carlsbad, N.M.), a provider of rig site potable water and wastewater recycling services. “Effluent and treated waste streams can now be recycled into the drilling and completions fluid life cycle. This process provides efficiencies to Stallion’s customers, drastically reduces on-site water requirements, and contributes to safer communities by reducing truck traffic to and from well sites,” said Stallion’s Chief Executive Officer David Mannon. Stallion will rebrand the Basin service as Stallion Remote Treatment or StaRT.

For more information on Environmental Industry Acquisitions, please visit our Environmental Consulting & Engineering Industry Review & M&A Trends page.


BWXT joint venture awarded $1.39 billion environmental contract
BWX Technologies Inc. (Lynchburg, Va.) announced in December that its joint venture with Stoller Newport News Nuclear (SN3), a subsidiary of Huntington Ingalls Industries Technical Solutions division, was awarded the Los Alamos Legacy Cleanup Contract. The work will be conducted at the U.S. Department of Energy’s Los Alamos National Laboratory (LANL). The contract is valued at approximately $1.39 billion over 10 years and focuses on environmental monitoring and remediation, waste management and disposition, and decontamination and decommissioning.


Envirosuite fast tracks global growth with Odotech acquisition
Envirosuite (San Francisco, Calif.), a provider of real time environmental management software, has acquired the assets of Odotech Inc. (Montreal, Canada), an environmental technology company specializing in monitoring and managing odors, gaseous contaminants, and dust. Odotech will add expertise related to municipal services, in addition to industries where odor is a major issue like wastewater, composting, and pulp and paper. Odotech owns proprietary hardware and processes, including the OdoWatch platform, which supports active air quality management for sites managed by industries and municipal services. Odotech has more than 70 OdoWatch sites worldwide.

For more information on Environmental Industry Acquisitions, please visit our Environmental Consulting & Engineering Industry Review & M&A Trends page.


Brookfield to acquire Westinghouse Electric for $4.6 billion
Westinghouse Electric Company (Cranberry Township, Pa.), a global leader in nuclear technology, fuel and services, is to be acquired by Brookfield Business Partners L.P. together with institutional partners for approximately $4.6 billion. Brookfield’s acquisition of Westinghouse, which filed for bankruptcy in March 2017, is expected to close in the third quarter of 2018, subject to bankruptcy court approval.

For more information on Environmental Industry Acquisitions, please visit our Environmental Consulting & Engineering Industry Review & M&A Trends page.