Montrose Environmental Group Acquires Environmental Chemistry, Inc.

Rhea-AI Summary

Montrose Environmental Group (NYSE: MEG) has acquired Environmental Chemistry, Inc. (ECI), a full-service environmental laboratory in the Texas and Louisiana gulf coast region. The deal enhances Montrose’s analytical capabilities, integrating ECI into its Measurement and Analysis Segment under Enthalpy Analytical, LLC. ECI, founded in 1990, is known for its comprehensive environmental laboratory services. This acquisition aims to bolster Montrose's service offerings in water and soil testing, complementing its air capabilities and expanding its regional responsiveness.

Positive

• Acquisition of ECI enhances analytical service capabilities in the Gulf Coast region.
• Integration of ECI adds water and soil testing services to existing air quality services.
• Strengthens Montrose's regional response to customer needs.

Negative

• None.

Transaction expands Montrose’s integration of environmental services in the gulf coast region

LITTLE ROCK, Ark. & HOUSTON--(BUSINESS WIRE)-- Montrose Environmental Group, Inc. (“Montrose”) (NYSE: MEG) today announced the acquisition of Environmental Chemistry, Inc. (“ECI”), a full-service environmental laboratory serving the Texas and Louisiana gulf coast region. ECI’s leadership team, including CEO Deanna Jean Zeck and President Nan Thorney, will join Montrose, and the business will be integrated into the Company’s Measurement and Analysis Segment and will operate as part of Enthalpy Analytical, LLC, a subsidiary of Montrose. Terms of the transaction were not disclosed.

Founded in 1990 and based in Houston, Texas, ECI provides a full suite of environmental laboratory analytical services to industrial, governmental, engineering and consulting clients in the gulf region. ECI is accredited in accordance with The NELAC Institute (TNI) standard in the states of Texas and Louisiana and supports companies regionally in remedial investigations, feasibility studies, site assessments, compliance monitoring and permit applications.

“ECI further strengthens our testing and analytical services in the gulf coast region, adding water and soil capabilities to Enthalpy’s current Gulf Coast air capabilities and provides additional analytical support to our CTEH operations,” said Jose Revuelta, Chief Strategy Officer of Montrose. “As demonstrated with our earlier acquisition this year of Vista Analytical in California, our expansion of environmental laboratory services across time zones is core to our strategy and will allow us to be even more responsive to customer needs regionally when they arise. We are excited to have Deanna and Nan’s talented team join us in our mission of helping protect the air we breathe, the water we drink and the soil that feeds us.”

Deanna Jean Zeck and Nan Thorney, CEO and President of ECI, respectively, stated, “We are pleased to partner with Montrose on expanding our strength in lab testing across a larger platform. Together we will continue to provide clients high quality, timely laboratory data. Montrose is a perfect cultural fit for us, as the team understands the driving motivations of founder-led companies like ours and has shown a demonstrable commitment to investing and expanding its laboratory capabilities. We’re excited to build upon Montrose’s success and eager to begin collaborating with our new colleagues.”

About Montrose

Montrose is a leading environmental services company focused on supporting commercial and government organizations as they deal with the challenges of today, and prepare for what’s coming tomorrow. With more than 2000 employees across over 70 locations around the world, Montrose combines deep local knowledge with an integrated approach to design, engineering, and operations, enabling the Company to respond effectively and efficiently to the unique requirements of each project. From comprehensive air measurement and laboratory services to regulatory compliance, emergency response, permitting, engineering, and remediation, Montrose delivers innovative and practical solutions that keep its clients on top of their immediate needs – and well ahead of the strategic curve. For more information, visit www.montrose-env.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be identified by the use of words such as “intend,” “expect”, and “may”, and other similar expressions that predict or indicate future events or that are not statements of historical matters. Forward-looking statements are based on current information available at the time the statements are made and on management’s reasonable belief or expectations with respect to future events, and are subject to risks and uncertainties, many of which are beyond the Company’s control, that could cause actual performance or results to differ materially from the belief or expectations expressed in or suggested by the forward-looking statements. Further, many of these factors are, and may continue to be, amplified by the COVID-19 pandemic. Additional factors or events that could cause actual results to differ may also emerge from time to time, and it is not possible for the Company to predict all of them. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update any forward-looking statement to reflect future events, developments or otherwise, except as may be required by applicable law. Investors are referred to the Company’s filings with the Securities and Exchange Commission for additional information regarding the risks and uncertainties that may cause actual results to differ materially from those expressed in any forward-looking statement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211011005100/en/

Montrose

Investor Relations:

Rodny Nacier

(949) 988-3383

ir@montrose-env.com

Media Relations:

Doug Donsky

(646) 677-1844

Montrose@icrinc.com

Source: Montrose Environmental Group, Inc.

FAQ

What is the significance of Montrose's acquisition of ECI?

The acquisition enhances Montrose's analytical service capabilities in the Gulf Coast region by integrating ECI's water and soil testing services.

When was the acquisition of Environmental Chemistry, Inc. announced?

The acquisition was announced on the date of the press release, which is unspecified in the provided information.

How does the acquisition impact Montrose's operations?

The acquisition allows Montrose to expand its service offerings and improve responsiveness to regional customer needs.

What are the future implications of Montrose acquiring ECI?

The acquisition positions Montrose for potential revenue growth and market expansion in the environmental services sector.