Tetra Tech Acquires American Environmental Group, Parkland Pipeline
Environmental consulting and engineering firm Tetra Tech has acquired Richfield, Ohio-based solid waste management specialist American Environmental Group (AEG) and — pending approval from the Competition Bureau of Canada — Parkland Pipeline, an Alberta-based company that serves the oil and gas industry in Western Canada.
Tetra Tech, which also provides construction management and technical services, says both companies will join its remediation and construction management segment. It did not disclose the terms of either acquisition.
AEG provides environmental, design, construction and maintenance services to solid and hazardous waste, environmental, energy, utility and other industrial clients. The company has more than 500 employees and about $95 million in annual revenue.
Tetra Tech expects AEG will contribute about $50 million of net revenue and, after intangible amortization and integration costs, about 1 to 2 cents to diluted earnings per share in fiscal year 2013.
Parkland specializes in technical support, engineering support and construction for pipelines and oilfield facilities. It has about 900 staff and about C$140 million ($142 million) in annual revenue.
Tetra Tech expects the Parkland transaction to be completed in the second quarter of fiscal year 2013. The company says it will reflect Parkland’s net revenue contribution and earnings accretion in its 2013 guidance after the transaction closes.
A report by Environment Analyst published in late 2012 named Tetra Tech as one of the top 10 companies in terms of gross global environmental consulting (EC) revenues. The top 20 had combined EC revenues of $10.6 billion in 2011, a 10.4 percent increase from the previous year, according to the study, which forecast the global EC market will reach $31.4 billion by 2016.
In October 2012 Tetra Tech won a $108 million contract to provide technical support for the EPA’s Office of Water.
Also in acquisition news, Great Lakes Dredge & Dock Corporation, the largest provider of dredging services in the US, has acquired the assets of environmental services provider Terra Contracting for about $20 million.
Great Lakes expects Terra to generate some $45 million of service revenue with 15 percent EBITDA margins in 2013, while also generating about $20 million of pass-through transportation and disposal revenue.
The company says Terra will add about $20 million to Great Lakes’ year-end 2012 backlog, excluding project option opportunities.
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