EBJ re-visits the merger & acquisition scene in the environmental industry and finds activity picking up in the post-recession climate for strategic, market and financial reasons. Both strategic acquirers and venture or private equity buyers have plenty of cash or capital to invest, and expect much higher returns from private companies than any conservative invetment would offer. Environmental markets are seen as relatively stable compared to others more prone to up-and-down cycles, and strategic players are limited in their options to pursue growth. This combination leads experts to predict that M&A activity in the environmental industry in 2011 will top 2009 and 2010 by a considerable margin and approach high-water marks of 2007-2008.
EBJ’s review of M&A activity includes trends and statistics, opinions of analysts, experts and transaction specialists, and profiles of several buyes and signature deals from 2010-2011.
Exhibits and data included in this issue are:
- Deal Activity in Consulting & Engineering, 2002-2011
- Notable C&E Transactions: January 2011 to April 2011
- Most Active Acquirors in Consulting & Engineering in the Past Eight Years
- Size of C&E Firms Acquired in Last 12 months through April 2011
- C&E Firms Acquired in 2009-2011
- Consolidation of U.S. Environmental C&E Industry 1990-2010
- Selected Environmental Industry Transactions (Non-Consulting & Engineering)
- Merger & Acquisition Activity in AEP Firms in the Past Five Years
Table of Contents
01.M&A Overview: Recession takes only a modest toll on the pace of merger & acquisition activity in the environmental industry and activity picks up in 2011: Strategic plays in resources keep contractors and waste firms busy; C&E firms and investors are putting cash reserves to use in an active market for consulting & engineering firms.pg 1-5
02.Segment Reports: The steady nature of the environmental industry attracts investors and the return of big deals in water and waste highlights growing niches; waste firsm move upstream into resources and labs also see an uptick in deals.pg 5-8
03.Q&A with John Cowdery who renders opinions from experience on both sides of a deal as a buyer and a seller.pg 10-12
04.Profiles: Serial acquirers, signature deals, foreign buyers, recent entrants and model transactions offer perspective on market strategy, approach to transactions, financing and integration: Acquiror companies profiled include: Stantec, Golder, Pennoni, AE Technology, Kleinfelder, Cardno, S&ME, Weston & Sampson and Parsons.pg 8-23