Environmental Market Intel
The environmental consulting industry is experiencing significant consolidation and strategic shifts.
In 2023, the landscape of industry consolidation witnessed significant activity, albeit at a slightly reduced pace compared to the preceding year. A total of 430 design and environmental firms underwent acquisition or merger processes, marking a decline of nearly 11% from the record-breaking 480-plus transactions recorded in 2022. This moderation in deal-making can be attributed primarily to heightened interest rates, which likely influenced the decision-making processes of numerous potential acquirers, effectively bringing the pace of consolidation back to levels reminiscent of 2021.
Breadth and Depth
Expansion of Service Offerings: Environmental consulting firms are broadening their service portfolios to offer integrated solutions that address a wide range of environmental challenges. We noted strong appetite in areas such as geospatial, geotechnical, water management, biodiversity and climate change adaptation.
Ecology and Biodiversity
SLR acquired FRC Environmental (FRC), a specialist aquatic ecology consultancy group based in Cleveland, Australia in Feb. 2024. This acquisition strengthens the firm’s Ecology and Biodiversity capabilities, particularly in freshwater, estuarine, and marine environments, by expanding advisory in Natural Capital issues. FRC's 18-person team complements their existing aquatic ecology services in Western Australia and Marine Science capabilities in New Zealand.
Trinity | Biodiversity
Nov. 2023, with a focus on aquatic resource management, the addition of Soundview Consultants bolsters Trinity's Water & Ecology team.
This transaction builds upon Trinity's previous acquisitions, including Minnow Aquatic Environmental Services, ECOSA, Vision Environment, Ecofish Research, and AWN Consulting. Trinity's Divisional President of Water & Ecology, Mike Remsberg, emphasizes Soundview's commitment to scientific excellence and environmental ethics, highlighting the cultural and technical synergy between the two entities. The acquisition underscores Trinity's dedication to enhancing its natural and aquatic resource consulting practice in the United States, complementing its existing expertise in air, water, and acoustics.
UES | Geotechnical M&A
Jun. 2023, UES acquires Riner Engineering to enhance geotechnical expertise. Founded in 2006, Riner Engineering has a skilled team of over 170 professionals and has completed numerous projects across Texas. The acquisition aims to enhance UES' presence and expertise in the Texas market, allowing them to better serve clients and provide expanded services.
This acquisition is part of UES' strategic expansion plan through a series of bolt-on acquisitions:
Universal Engineering Sciences
GFA International, Inc
NOVA Geotechnical & Inspection Services
Contour Engineering
Wallace-Kuhl & Associates
Construction Testing & Engineering
SUMMIT Engineering, Laboratory & Testing
GEOServices
Geosyntec | Blackstone Energy Partners
May 10, 2022 – Blackstone to make a majority investment in Geosyntec Consultants.
The rationale behind this partnership lies in the rising demand for environmental services, driven by trends such as the energy transition, infrastructure renewal, and climate change mitigation. Blackstone sees Geosyntec's strong reputation and technical expertise as valuable assets in addressing these challenges and meeting the growing demand for environmental consulting services.
This partnership reflects broader trends in mergers and acquisitions within the environmental consulting industry, where firms are increasingly seeking to expand their capabilities and geographical reach through strategic alliances and acquisitions. The scale and complexity of environmental challenges require firms to innovate, grow, and form creative partnerships to effectively respond to client needs.
RMA | Black Eagle
Whatever it is, the way you tell your story online can make all the difference.
RMA Companies, backed by OceanSound Partners, acquired Black Eagle Consulting, a Reno, Nevada-based provider of geotechnical and construction inspection services. This marks RMA's 12th acquisition since August 2021, as it aims to establish a national platform for testing, inspection, and related services to support critical infrastructure development and maintenance across the United States.
With over 27 years of experience, Black Eagle has become a regional leader in Northern Nevada, offering geotechnical engineering, construction materials testing, inspection, and advanced non-destructive examination services. Serving various sectors including federal and state agencies, municipal public works departments, and mining companies, Black Eagle operates out of Reno and Carson City.
Regional and Global Expansion
Geographic Expansion: Companies are seeking to broaden their geographic footprint through mergers and acquisitions. Expect to see strategic partnerships that enable firms to enter new markets, access local expertise, and better serve clients on a global scale.
Ardurra | Littlejohn
Ardurra Group, Inc. (Ardurra), a portfolio company of Littlejohn & Co., has been actively pursuing bolt-on acquisitions in the space.
Regional Consolidation of Water / Wastewater and Transportation consulting firms in Florida and the Southeast region.
With the string of acquisitions, Ardurra further enhances its service offerings and expands its presence in Florida and the Southeast region, positioning itself to better serve both public and private sector clients in the region. Recent transactions in Texas highlights Ardurra’s quest to become a national player.
Nov 2023: acquisition of Arredondo, Zepeda & Brunz, LLC (AZ&B), an 86-person Transportation / Aviation / Transit / Survey / Water firm based in Dallas, TX.
Oct 2023: acquisition of Inwood Consulting Engineers, Inc. (Inwood). Based in Orlando, FL, Inwood specializes in Transportation / Water solutions with a team of 75 professionals.
Jul 2022: acquisition of 300 Engineering Group, P.A. (300 Engineering), a Miami, FL-based firm specializing in Water / Wastewater and Public Works solutions. Ardurra completed the transaction during its prior ownership by RTC Partners, a Miami-based private equity firm that partners with managers of middle market companies.
Feb 2022: acquisition of Pevida Highway Designers, LLC (PHD), a transportation civil engineering firm based in Miami, Florida serving the FDOT and local transportation agencies.
Nov 2020: acquisition of Pigeon-Roberts & Associates, a boutique firm that primarily serves regional agencies in the water and wastewater markets. With this deal, Ardurra Group seeks to enhance its regional footprint in Florida’s water market.
Sept 2020: acquisition of Constantine Engineering, that provides engineering services in the water, wastewater, and public works markets in the Southeastern markets through offices in Alabama, Georgia, Florida, and South Carolina.
Kleinfelder | Lindsay Goldberg | Wind Point
Kleinfelder's expanded its presence in the U.S. infrastructure and service offerings in the Mid-Atlantic region. through the acquisition of Century Engineering, Inc. (Century) in Nov. 2021. Established in 1953 and headquartered in Hunt Valley, Maryland, Century specializes in a comprehensive range of engineering services, encompassing transportation planning, design, and inspection, water and environmental resources engineering, electric and gas utility engineering, and more. The firm is knowned for its commitment to technical excellence and innovative solutions, serving a diverse client base that includes Federal, state, and local governments, transportation agencies, utilities, universities, healthcare systems, and commercial clients.
With this acquisition, Kleinfelder aims to leverage Century's expertise and extensive service portfolio to bolster its capabilities in the Mid-Atlantic region.
Kleinfelder Group finalized the acquisition of Gas Transmission Systems, Inc. (GTS) in Oct. 2020, to reinforce Kleinfelder's position as a leading expert in gas utilities and pipeline services within the U.S. market. Founded in 1998, GTS has garnered recognition for its specialized knowledge in serving gas utilities and pipeline operators throughout the United States. With a focus on integrity management and infrastructure rehabilitation, GTS is well-positioned to capitalize on regulatory opportunities.
California Dreaming
bolt-on acquisitions to push west…
Bowman Consulting | California
Nov. 2023: announced the acquisition of Blankinship & Associates, in Davis, California. Founded in 2000 by its current president, Mike Blankinship, Blankinship specializes in water resources management, natural resource management, permitting and compliance. This strategic move reinforces Bowman expansion into California as well as augmenting service offerings.
Jul. 2022: Headquartered in Reston, Virginia, Bowman acquired Project Design Consultants (PDC), established in 1976 and headquartered in San Diego, CA. PDCspecializes in civil engineering, surveying, planning, and landscape architecture, catering to various public and private clients across Southern California.
Digitization
The integration of technology is becoming increasingly important in the environmental consulting sector. COVID-19 accelerated the digitization of the industry in light of onsite disruptions.
Transactions that facilitate the adoption of innovative technologies such as remote sensing, data analytics, artificial intelligence to enhance environmental monitoring and assessment have been instrumental to enhance competitive edge.
EHS SaaS | ESG SaaS Consolidation
Cority, a global enterprise Environmental, Health, and Safety (EHS) software provider backed by Thoma Bravo, has been active in acquiring ESG SaaS
Greenstone+, acquired in May 2023, is an organization dedicated to streamlining and enhancing the process of collecting, analyzing, and disseminating sustainability data. This is achieved through guided workflows, customizable questionnaires, user-friendly data collection tools, extensive emission and framework libraries, along with advisory services and data management support. With presence in London and New York, Greenstone+ caters to more than 75 clients spanning across 106 countries and operating within 15 different industries.
Reporting 21, a sustainability-focused SaaS platform and consultancy based in Paris, France, was acquired in 2022. Reporting 21 (previously known as Sirsa) established in 2014, specializes in Environmental, Social, and Governance (ESG) performance solutions to over 150 clients across more than 120 countries, including companies names like BlackRock, L’Oreal, Eurazeo, and UBS.
Sphera | Blackstone
In 2021, Blackstone announced the acquisition of Sphera, a leading provider of ESG software, data, and consulting solutions (“ESG SaaS”) from Genstar.
The deal, valued at approximately $1.4 billion, underscores the growing importance of ESG considerations in the business landscape. Sphera's expertise lies in assisting organizations in navigating and mitigating ESG risks through its suite of software tools, data analytics, and consulting services.
The move by Blackstone reflects a broader trend of increasing investor focus on ESG and the recognition of the need for robust solutions to address these concerns. This acquisition aligns with Blackstone's strategic investment focus on companies positioned to capitalize on the burgeoning ESG market. By partnering with Sphera, Blackstone aims to leverage its resources and expertise to further accelerate Sphera's growth trajectory in this rapidly expanding sector.
The transaction also highlights a broader trend of consolidation within the ESG services industry, as companies seek to bolster their capabilities and disrupt the market through strategic acquisitions in ESG SaaS.
Contact Us
Gain unparalleled insights into market dynamics, competitive landscape, and emerging trends in the Environmental Engineering & Consulting market. Stay ahead of the curve and make informed strategic decisions with our comprehensive analysis.
