Evoqua Water Technologies Corp., a provider of water treatment solutions in Pennsylvania, Wednesday announced one of its wholly-owned subsidiaries has signed a definitive agreement to acquire ProAct Services Corp., a Ludington, Mich.-based provider of on-site treatment services of contaminated water in all 50 states from the private equity firm Hammond, Kennedy, Whitney, and Co. Inc. and members of management for $132 million.
Upon closing, ProAct Services will operate as a separate division within Evoqua’s Industrial Segment and will continue to be based in Ludington. The transaction is expected to close upon receipt of regulatory approvals and satisfaction of customary closing conditions.
ProAct has annual revenue of about $54 million and provides expanded offerings for Evoqua across its existing environmental solutions. It enhances Evoqua’s service capabilities in mobile/temporary process water and wastewater treatment, hydrostatic water treatment, and coal ash pond remediation.
“ProAct Services has a well-earned reputation for safety, exceptional service, and a commitment to customer satisfaction. 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,” says Ron Keating, CEO of Evoqua. “In addition, ProAct will expand our portfolio offerings as we service our industrial customers’ needs across a complete line of environmental solutions.”
ProAct combines engineering expertise with in-field service technicians and a proprietary fleet of modular equipment. It provides customized, on-site groundwater and soil treatment solutions, hydrostatic water treatment, and tank degassing solutions. It has facilities in California, Florida, Michigan, Minnesota, New Jersey, Virginia, and Texas.
“We are enthusiastic to join the Evoqua team,” says Gerard Smiddy, CEO of ProAct. “Not only are our businesses complementary, but so is Evoqua’s commitment to safety, growth, and helping its customers and partners to succeed.”
Evoqua intends to finance the acquisition using an incremental $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. Pro forma net leverage is expected to be approximately 3.6x following the transaction and financing.