Water-treatment company sells for $132M
A global company with a location in the region is acquiring a West Michigan maker of water-treatment equipment.
Pittsburgh-based Evoqua Water Technologies — which has a location in Holland — said last month one of its subsidiaries signed a definitive agreement to acquire Ludington-based ProAct Services Corporation for $132 million from the Indianapolis-based private equity firm Hammond, Kennedy, Whitney & Company and members of management.
ProAct Services is a provider of on-site treatment services for contaminated water.
The company reported 2018 revenue of about $54 million.
The deal is expected to provide an array of expanded offerings and synergies across Evoqua's environmental solutions and enhance its service capabilities in mobile/temporary process water and wastewater treatment, hydrostatic water treatment and coal ash pond remediation.
“The addition of 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 Ron Keating, CEO, Evoqua.
“In addition, ProAct will expand our portfolio offerings as we service our industrial customers’ needs across a complete line of environmental solutions.”
Gerard Smiddy, CEO of ProAct Services, said his company is “enthusiastic” about joining Evoqua.
“Not only are our businesses complementary, but so is Evoqua’s commitment to safety, growth and helping its customers and partners to succeed,” Smiddy said.
The deal is expected to close upon receipt of required regulatory approvals and satisfaction of customary closing conditions.
Post-acquisition, ProAct Services will operate as a separate division within Evoqua’s Industrial Segment and continue to be based in Ludington.
Evoqua will finance the acquisition using an incremental $150-million first-lien term loan.
Founded in 1994, ProAct Services Corporation provides customized on-site groundwater and soil-treatment solutions, hydrostatic water treatment and tank de-gassing solutions to customers, including 24/7 oversight, maintenance and systems operations.
The company has about 180 employees, a nationwide service footprint and facilities in California, Florida, Michigan, Minnesota, New Jersey, Texas and Virginia.
Formerly the 100-year-old company Siemens and re-named in 2013 after an acquisition, Evoqua Water Technologies (NYSE: AQUA) is a provider of “mission-critical” water-treatment solutions, offering services, systems and technologies to support customers’ water lifecycle needs.
It particularly specializes in industrial, commercial and municipal water treatment, serving more than 38,000 customers worldwide.
Evoqua operates 160 locations in eight countries.
The company reported 2017 revenue of about $1.24 billion.