Description
Mergers & Acquisitions the Environmental Industry 2020
M&A Activity In 2020 Overshadowed By COVID-19 Crisis
In this 70-page edition of Environmental Business Journal, EBJ presents a strategic review of Mergers & Acquisitions in the Environmental Industry with the help of the leading experts in the field: the investment banking and strategic advisory firms that manage or are involved in a great many of the industry’s larger transactions, as well as private equity and strategic acquirers. Summary data on M&A activity, valuations, and important economic and social indicators as the COVID-19 crisis enveloped the world in Q1 2020 are presented and summarized by EBJ for their impact on short- and long-term markets.
Table of Contents
Mergers & Acquisitions the Environmental Industry takes a back seat to coronavirus response, but analysts concur that activity is unlikely to be much shaken given an expected recovery; Data on key indicators, M&A activity and valuations ….. 1-11
AEC Advisors expects M&A activity to continue after COVID-19 lull; Colliers majority stake for Maser is a case study in Real Estate and C&E partnership; Divestitures in season as firms seek better fits and focus on core markets ….. 12
Morrissey Goodale sees AEC M&A reach new heights in 2019; 2020 outlook ….. 20
2020 Environmental Group sees buyer interest in water & infrastructure; Expects a V-shaped recovery; COVID-19 a force majeure event so values may not suffer ….. 22
ROG + Partners expects to see one or two quarters of ‘non-recurring’ under performance will re-set the M&A market in architecture & engineering ….. 25
Houlihan Lokey’s environmental services practice benefits from steady growth, cycle resistance and non-discretionary nature of the environmental industry ….. 27
Matheson Advisors shares its expertise in middle market valuations and M&A; Notes the rapid shift to a ‘buyers market’ in 2020; Perspective on ESOPs ….. 29
EFCG clients looking ahead to ownership transition, growth and M&A ….. 36
Brown Gibbons Lang & Company sees tailwinds into 2020 but COVID-19 and oil & gas lead to a ‘different’ year in Environmental & Industrial Services M&A ….. 39
BMO Capital Markets weighs the balance between IPO and sale for its larger clients; Welcomes the arrival of new generation of private buyers into the market ….. 42
Sandberg Consultants stresses the importance of management preparation and integration planning to success in M&A for mid-sized and smaller companies ….. 44
US Ecology tops $1 billion in revenue with NRC deal; Safety & decontamination services well suited to COVID-19 world and post-COVID business environment ….. 46
RSK keeps up a brisk M&A pace to rank as #3 firm in the UK; Grows on the continent with M&A in Germany and Italy ….. 49
NV5 adds nine companies and $200 million in record M&A year in 2019 ….. 51
SLR continues ambitious growth strategy with more M&A; Passes $200 million and $60 million in USA revenues with New England acquisition of MMI ….. 53
LaBella Associates M&A adds contracting in NY and environmental in PA; Seeds new waste & recycling practice ….. 56
Barr Engineering completes 5 acquisitions in last 5 years after 4 in its first 45 years; Strengthens its natural resource focus on power, mining, fuels and water ….. 58
Farallon Consulting relies on strong corporate culture & ‘The Farallon Way’ to initiate M&A; Completes its first acquisition in 2019 ….. 61
Clairvest completes sixth investment in solid waste & recycling: C&E next?; Pritzker Private Capital puts Valicor on fast forward; Dar Group a global A&E player from the Middle East; Montrose keeps up the M&A pace with acquisition of CTEH and support from investor partner GFI/Oaktree ….. 63
Solid waste industry consolidation continues with leaders old and new extending market positions; Updates on Waste Management and GFL IPO ….. 67
Exhibits in this edition of EBJ include:
U.S. Unemployed by Industry: April 2019 vs. April 2020 (thousands)
Comparison of Annual Growth in GDP and Carbon Dioxlide Emissions: Global and USA
Annual Electricity Net Generation, Electric Power Sector (Billion Kilowatthours): 1949-2019
Monthly Electricity Net Generation, Electric Power Sector (Billion Kilowatthours): 1949-2019
U.S. Energy Information Administration Weekly Electricity Use in 2020
WHO Global Number of Deaths by Cause in 2016 (millions)
Changes in Energy Intensity and Productivity: 1980-2011
U.S. Energy Information Administration Electricity Use and GDP Growth 1950 to 2040
U.S. Environmental Engineering & Consulting M&A Deal Count by Quarter
U.S. A/E/C and EEC M&A Deal Count by Quarter
U.S. A/E/C and AE M&A Deal Count by Year: 2011-2019
Primary Market Segment of AEC Selling Companies by Year
Median Revenues of AE Selling Companies: 2016-2020
Census Data on Shares of Companies of 500+ in Environmental Services and all Professional Services
Most & Least Consolidated Categories in Environmental Services and all Professional Services
Distribution of U.S. Environmental Consulting & Engineering Firms in 2018
Share of Top Companies in U.S. C&E Industry 2000-2019
M&A Valuation Multiple Arbitrage based on Size
Private Equity vs. Strategic Buyer Valuation Multiples
M&A Post-Cost Synergy Valuations
AEC Advisors List of Prominent AEC Industry Divestitures: 2014-2020
U.S. and International AEC M&A Deal Count: Q1 2016-2020
Example Financial Performance and Outlook under COVID (revenues in $ millions)
ROG+Partners’ List of Selected 2019-2020 Private Equity Investments in A/E & Environmental Firms
Select Publicly Traded A/E/C Companies: Enterprise Value/EBITDA Multiples
Select Publicly Traded A/E/C Companies: Enterprise Value/Gross Revenue Multiples
Select Publicly Traded A/E/C Companies: Enterprise Value/EBIT Multiples
EFCG Data on A/E/C M&A Activity in Acquired Revenue by Year
Median & Weighted Average Net Revenue Growth – Historic & Expected
BG&L Data on Aggregate Transactions in Environmental Services by Quarter
Public Trading Comparables: Environmental Services Indicies Performance Last 10 Years
EFCG A/E/C Index Price Earnings Ratio: Aggregate Value / EBITDA (Through 9/30/2019)
ECOL + NRC: A Compelling Combination
NV5 2019 Acquisitions
LaBella Associates Acquisitions: 2015-2020
Barr Acquisitions 2015-2020
Amount of Private Investor ‘Dry Powder’ by Type by Year
Tomas Pueyo: Hammer & Dance Phases of Pandemic Response
GFL Environmental: Q1 Revenues 2019-2020
2018 U.S. Solid Waste Industry by Companies
For more information on the Environmental Industry, click here to visit the EBJ homepage.
