EBJ Vol XXIX No 01 & 02: M&A in the Environmental Industry 2016


Environmental industry merger & acquisition (M&A) activity reached peak levels across multiple segments in 2015, and prospects for both buyers and sellers look good into 2016 and beyond. Many segments of the industry remain relatively fragmented, and professional private investment capital has only become influential recently in environmental services. Combined with a fairly positive and stable market, owners, shareholders and investors are not wrong to be optimistic about the future of their positions in environmental firms. Compiled data shows a record 224 transactions in environmental services in 2015, up 13% in total, with environmental engineering & consulting the leading segment with 101 transactions in 2015 up 10%.

Exhibits and data included in and with this issue are:

  • M&A Transactions in Environmental Services, 2008-2015
  • M&A Transactions in Environmental Consulting & Engineering
  • Recent Trends in Valuations, EE&C 2011-2015
  • EBJ’s Top 10 2015 Transactions in Environmental Consulting & Engineering
  • Key M&A Transactions in Hazardous Waste and Environmental Contracting
  • WSP: Mergers & Acquisitions, 2014-2015
  • WSP Net Revenues & EBITDA, 2006-2015 ($mil)
  • WSP Group, Number of Acquisitions, 2006-2015
  • TRC Companies Gross Revenues, 2000-2014 ($mil)
  • TRC Net Revenue Breakdown Pre- and Post Willbros Acquisition
  • Pennoni Associates Gross Revenues, 2000-2014 ($mil)
  • Pennoni: Mergers & Acquisitions, 2014-February 2016
  • Terracon Consultants Gross Revenues, 2000-2014 ($mil)
  • Terracon: Mergers & Acquisitions, 2014-2016
  • Stantec Inc. Gross Revenues, 2000-2014 ($mil)
  • Stantec: Mergers & Acquisitions, 2013-2015
  • EFI Global Inc. Gross Revenues, 2005-2014 ($mil)
  • American Water 2011-2015
  • American Water: Regulated Operations, 2014 Revenues ($2.67 billion total)
  • Ramboll Group 2014 Revenues ($1.63 billion total)
  • Valuation Multiples Trend Upwards For U.S. C&E Firms
  • Distribution of U.S. Environmental C&E Firms in 2014
  • Montrose Environmental Group Acquisitions 2012-2015
  • U.S. M&A Transactions in the AEC Industry by State in 2015
  • U.S. M&A Transactions in the AEC Industry, 2011-2015
  • Global M&A Transactions in the AEC Industry, 2013-2015
  • The EBI "Energy & Environmental Eight" (E8)
  • Revisiting Climate Stabilization Wedges - and expected lack of progress (% of goal)

Table of Contents

01.M&A Overview: Environmental industry merger & acquisition activity increased in 2015 and positive environment for both buyers and sellers should continue; top 10 transactions in C&E and highlights in contracting and environmental testing.pg 1-7

02.WSP acquisition strategy shows no signs of slowing, but cultural fit is imperative.pg 8

03.TRC delivering strong performance on top of a transformative acquisition.pg 11

04.Culture is king in Pennoni's M&A strategy; deals keep rolling in.pg 16

05.Terracon resists private equity partnerships for organic M&A.pg 18

06.Stantec’s acquisition strategy strives for balance, diversity and cultural fit.pg 20

07.EFI Global expands into insurance risk claims with the acquistion of LA firm.pg 22

08.American Water M&A strategy balances market-based and regulated sectors.pg 24

09.Year after merger, cultural fit still holds strong for Ramboll Environ.pg 26

10.ROG+Partners’ 5 takeaways on 2015, and the internal vs. external sale debate.pg 28

11.2020 Environmental Group says we could see an increase in sellers as more baby boomers seek to sell, and other factors leading to higher multiples in M&A.pg 30

12.Morrissey Goodale sees M&A activity up 5% and more smaller deals in 2015.pg 32

13.Jerry Strub, Strategic Growth Consulting, on overcoming challenges for small C&E firms.pg 34

14.Special Feature: Q&A with EBJ Summit keynote speaker David Victor.pg 36



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