Evoqua Water Technologies announced one of its wholly-owned subsidiaries has signed a definitive agreement to purchase ProAct Services, a provider of contaminated water treatment solutions, 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, Michigan. The transaction is expected to close upon receipt of required regulatory approvals and satisfaction of customary closing conditions.
ProAct Services, which has revenues of approximately $54 million, provides an array of expanded offerings for Evoqua across its existing environmental solutions and enhances Evoqua’s service capabilities in mobile/temporary process water and wastewater treatment, hydrostatic water treatment, and coal ash pond remediation.
The company 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 to customers including 24 / 7 oversight, maintenance and general operations of the systems.
ProAct Services has approximately 180 employees, a nationwide service footprint and facilities in California, Florida, Michigan, Minnesota, New Jersey, Virginia and Texas. Evoqua expects to achieve synergies following the close of the transaction.
“We are enthusiastic to join the Evoqua team,” said ProAct Services’ CEO Gerard Smiddy. “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.