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U.S. Ecology Inc. and NRC Group agree to Merge

US Ecology, Inc. (Nasdaq-GS: ECOL) recently announced that it has entered into a definitive merger agreement with NRC Group Holdings Corp. (NYSE American: NRCG), a company that provides comprehensive environmental, compliance and waste management services to the marine and rail transportation, general industrial and energy industries, in an all-stock transaction with an enterprise value of $966 million.

The transaction is expected to close in the fourth quarter of 2019. The transaction will create a company specializing in industrial and hazardous waste management services.

U.S. Ecology Inc. owns the Stablex hazardous treatment facility and landfill in Blainville, Quebec.

Stablex diposal cells

“The addition of NRCG’s substantial service network strengthens and expands US Ecology’s suite of environmental services,” said Jeffrey R. Feeler, President, Chief Executive Officer and Chairman of US Ecology. “This transaction will establish US Ecology as a leader in standby and emergency response services and adds a new waste vertical in oil and gas exploration and production landfill disposal to further drive waste volumes throughout the Gulf region.”

Headquartered in Great River, New York, NRC operates from over 65 offices and facilities throughout the Pacific (including Alaska and Hawaii), Southwest, Southeast, Atlantic, and Northeast regions.

As a nationally-recognized Oil Spill Removal Organization, NRCG generates a recurring, compliance-driven revenue stream, with upside from spill events and international expansion, particularly in Mexico and Canada.

NRCG is one of two leading national Oil Spill Removal Organizations (“OSRO”) that provide mandated standby emergency response for the transportation of oil products.  With more than 50 service centers, NRCG has a national service network providing emergency and spill response, light industrial services, hazardous and industrial waste management and transportation services.  From a growing base of disposal assets in the two key oil basins in the Gulf region, the Permian and the Eagle Ford, NRCG provides landfill disposal of waste from oil and gas drilling, treatment and handling of residual waste streams and rental and transportation services to support its disposal operations.

The combined company will use the US Ecology name, and its shares will continue to be listed on the Nasdaq Global Select Market under the ticker ECOL.  Jeffrey R. Feeler will continue to serve as President, Chief Executive Officer and Chairman of the Board of Directors.

VelocityEHS acquires Industrial Hygiene Software company Spiramid

VelocityEHS, a Chicago-based environment, health, safety (EHS) software company, recently announced it has acquired Spiramid, developer of the a system for managing industrial hygiene (IH). The acquisition adds Spiramid’s occupational safety & health software to the VelocityEHS’s EHS platform. The software, now called VelocityEHS Industrial Hygiene, gives organizations the capabilities to efficiently run an industrial hygiene program.

VelocityEHS is launching its new Industrial Hygiene solution at a time when IH is at an important crossroads. The need for workplace programs that anticipate and prevent workplace hazards is growing, while the number of certified industrial hygienists and investments in traditional programs has been on the decline.

“We’re excited to launch our powerful new Industrial Hygiene product. It’s a perfect fit for people working on the frontlines and has great synergy with our market-leading Chemical Management capabilities. Its simple design cuts through the complexity of IH tasks,” said Glenn Trout, president and CEO of VelocityEHS. “While there’s no substitute for a well-trained, well-resourced team of industrial hygienists, the reality today is that a growing number of EHS generalists are being called upon to do sampling and run IH programs that fall outside the scope of their training and traditional responsibilities. Whether you’re a veteran hygienist or new to the role, we believe our new IH solution will provide significant value.”

The software gives companies with sophisticated programs the ability to see, in one place and in real time, what’s happening across their enterprise. It gives staff hygienists new reporting tools — like dynamic risk matrices — to help them determine where and why to deploy resources, as well as to demonstrate the value of IH when talking with leadership stakeholders. For companies without a Certified Industrial Hygienist, it provides a framework for managing exposure risks and meeting a wide range of IH tasks.

“The goal of any industrial hygiene program is to help as many people in the workplace as you can. I am proud to see our IH software, which we have spent years perfecting, added to the VelocityEHS platform, which serves the industry’s largest EHS software community,” said Dave Risi, co-founder of Spiramid.

Managing IH can require the collaboration of many stakeholders, including people sampling in the field, IH consultants, outside laboratories, and program managers. VelocityEHS’ Industrial Hygiene software is a central management hub, facilitating the workflow and hand-off of responsibilities from party to party. For instance, users can more easily plan and control all aspects of IH, from selection of chemicals and analytical methods, to selection of laboratories and access of sampling results, with options to share information with the right stakeholders. The solution lets users send chain of custody forms directly to labs and receive the analytical data electronically, inside the product, eliminating the need for manual input and helping to avoid errors by making the information readily accessible.

Other features include an in-product database of CAS Registry Numbers, OELs and laboratories, plus easy tools for tracking and managing of similar exposure groups (SEGs), qualitative assessments, sampling plans, medical surveillance, surveys, samples and equipment. It is the smartest and most efficient way to track a high-volume of complicated sample data and to manage risk assessments and mitigation programs.

The new IH software, together with VelocityEHS’ Chemical Management and Industrial Ergonomics solutions, provides industrial hygienists with the comprehensive resources they need to promote healthier workplaces.

Canadian Consulting Firm acquired by UK Giant

Novus Environmental, a 25-person specialized consulting firm with offices in Guelph ON and Calgary AB, was recently acquired by SLR, an UK-headquartered global environmental and advisory firm.

Novus will bring additional capability to SLR’s North American business in air quality, noise and vibration, and wind and climate. The Novus team will join SLR’s Canada business, which will now be 280 strong with 18 offices.

SLR began as SECOR Ltd. in 1994. Starting as a UK business, the company now operates as a global company with more than 1,100 people delivering client solutions across five regions. SLR offers a wide range of advisory and environmental consulting services.

This is SLR’s third acquisition in four months, reflecting the confidence of the company and its new investor Charterhouse Capital Partners in the market, according to Neil Penhall, SLR’s chief executive.

Englobe and DST Join Forces

Englobe Corp. (“Englobe”), a Canadian-based company specializing in Soils, Material and Environmental Engineering, with an established network of more than 55 offices and 30 laboratories across Canada, recently acquired DST Group Inc. (“DST”). DST is a consulting engineering firm founded over 60 years ago with more than 165 employees and nine offices across Ontario and Western Canada. By joining forces, Englobe and DST increase their footprints with 14 offices and 350 staff in Ontario and nearly 160 staff across six offices in Western Canada.

Both companies will be well positioned to offer complementary services and expertise to each other’s clients in both geographical areas, including municipalities, provincial and federal governments, and private sector clients.

“DST shares the same important values as Englobe – focusing on our employees, offering innovative solutions to our clients and emphasizing high-quality project management. We are very happy to have found a partner in Englobe with whom we can build upon our mutual strengths and provide exciting new opportunities to both employees and clients. Our enhanced service offering in the regions will benefit clients nationwide,” says Maurice Graveline, former CEO of DST and new Vice President Operations Ontario at Englobe.

Stephen Montminy, Englobe Co-President, says: “We are extremely pleased to welcome DST to the Englobe family. Its well-established reputation will contribute to consolidating our presence in Ontario and Western Canada and I look forward to seeing the beneficial impacts as we grow together. This is an exciting continuation of our pan-Canadian growth path and creates many new jobs and business opportunities.”

In November, Englobe Corp eacquired McIntosh Lalani Engineering Ltd, a Calgary-based consulting engineering business specializing in geotechnical engineering and materials testing services.  McIntosh Lalani, established in 1997, will continue to operate under its existing name.

Englobe is backed by ONCAP, the mid-market investment arm of Canadian private equity firm Onex Corp. ONCAP invested in 2006 and later partnered in Englobe’s acquisitions and go-private deal in 2011.

Englobe Soil Treatment Facility

About Englobe Corp. and DST, a division of Englobe Corp.

Englobe offers a full range of services and solutions in soils, material and environmental engineering ranging from project design and environmental impact surveys, to technical know-how and consulting to, ultimately, regenerating the earth. The firm provides integrated, sustainable and innovative solutions designed to exceed the expectations of its clients, in both private and public sectors, who are looking for reliable technical expertise, know-how and capabilities customized to each of their projects. Englobe is proud to leverage more than 50 years of achievements in Canada, France and UK to go beyond expertise by empowering its dedicated people to share their work and passion for the benefit of our partners, communities and the environment. englobecorp.com

DST Group Inc. is a consulting engineering firm specializing in Environmental Engineering/Science, Hazardous Materials Consulting, Geotechnical Engineering, Construction Materials Testing, and collectively, Facilities Blasting/Demolition Engineering/Acoustics & Vibration Monitoring. The firm provides services in Ontario and Western Canada. DST was established in 1956 and is an employee-owned firm. dstgroup.com

Environmental Industry M&A in 2018

Environmental Business International, Inc. (EBJ) recently published the 2018 Environmental Industry Mergers and Acquisitions.  The book provides an in-depth analysis of the mergers and acquisitions (M&A’s) that have occurred in the environmental industry in 2018.  Included in the publication are discussions on Stantec’s additions in the UK, Australia and New Zealand along with cultural fit in employee-ownership model at Golder.

The publication states that experts are calling 2018 as the “strongest year we have seen in this decade” with respect to M&A’s in the environment industry. According to the findings in the publication, M&A activity is at record levels and is up 20% over 2017. Some experts assert that Merger & Acquisition activity may be cresting in 2018, but many experts and deal-makers see scope for continued pace. Generally optimistic outlooks drive investment strategies of companies, private equity firms and corporate acquirers, but acquirers and sellers keep their correction contingency plans close at hand.

According the findings in the report, analysts, management consultants and investment bankers report that multiple factors are aligned to continue the strong pace of M&A and high valuations,

Exhibits in this 2018 Environmental Industry Mergers and Acquisitions edition of EBJ include:

  • Consolidation of U.S. C&E Industry 1990-2017
  • Top 10 U.S. Remediation Firms 2000-2016 (Gross Revenues in $mil)
  • Share of Top Companies in U.S. C&E Industry 2000-2017
  • Top 5 & 10 U.S. Environmental C&E Firms 1995-2017(Gross Environmental C&E Revenues in $mil)
  • A Decade of US M&A Activity in the AEC Industry
  • 2007-2018 Interstate M&A Deal Flow in AEC
  • 2018 Year-to-Date Heat Map of Regional AEC M&A Activity
  • Influence of Publicly-Traded Buyers in AEC M&A, 2007-2018
  • Influence of Private Equity in AEC M&A, 2013-2018
  • Most Prolific Buyers (2011 – YTD 2018)
  • Several revenue history and acquisition lists for profiled companies
  • Levels of Interest That Help Determine Value in AE Firms
  • U.S. M&A Activity in Environmental and Industrial Services: 2009-2018
  • M&A Activity in Environmental Services: Special Waste & Environmental Engineering & Consulting

For more information on the environmental C&E industry, visit Reports & DataPacks page.