Evoqua Water Technologies Corp has signed a definitive agreement to purchase ProAct Services Corp, a US provider of on-site water and air treatment solutions and services, from private equity firm Hammond, Kennedy, Whitney & Company Inc and members of management, for US$132 million.
ProAct Services, which has annual revenues of approximately US$54 million, will expand Evoqua’s service capabilities in mobile/temporary process water and wastewater treatment, hydrostatic water treatment, and coal ash pond remediation.
With in-field service technicians and a proprietary fleet of modular equipment, ProAct Services provides customized, on-site groundwater and soil treatment solutions, hydrostatic water treatment and tank degassing solutions including 24/7 oversight, maintenance and general operation of the systems. ProAct Services employs around 180 people, has a US-wide service footprint and facilities in California, Florida, Michigan, Minnesota, New Jersey, Virginia and Texas.
“The addition of their 900 mobile assets using remote-monitoring technology enhances Evoqua’s ability to be a ‘one-stop shop’ for customers that are looking for temporary and mobile water treatment solutions,” said Evoqua CEO Ron Keating. “In addition, ProAct will expand our portfolio offerings as we service our industrial customers’ needs across a complete line of environmental solutions.”
When the deal closes, ProAct Services will operate as a separate division within Evoqua’s Industrial Segment and will continue to be based in Ludington, Michigan.
Evoqua intends to finance the acquisition using an incremental US$150 million first lien term loan. The funds will be used to support this transaction, as well as to replenish the internally funded purchases of two recent acquisitions, and for general corporate purposes.