Montrose Environmental Group Acquires Origins Laboratory, Strategically Expanding Environmental Testing Operations in Rocky Mountain Region

Rhea-AI Summary

Montrose Environmental Group (NYSE: MEG) has acquired Origins Laboratory, a leading environmental testing lab in Denver, Colorado. This strategic move expands Montrose's presence in the Rocky Mountain region and enhances its Measurement and Analysis Segment. Origins, founded in 2006, specializes in water, soil, and air contamination testing for oil and gas clients, offering advanced services like VOC air analysis and PFAS measurement.

The acquisition allows Montrose to provide integrated environmental solutions in the region, combining laboratory services with existing offerings. Origins' rapid turnaround capabilities, including same-day results, enable significant cost savings for clients through faster remediation and improved project efficiency. This move aligns with Montrose's commitment to responsive, client-focused service and positions the company to address evolving regulatory needs in the environmental sector.

Positive

• Strategic expansion of Montrose's laboratory services in the Rocky Mountain region
• Integration of Origins' specialized testing capabilities, including VOC air analysis and PFAS measurement
• Potential for increased cost savings and efficiency for clients through rapid turnaround times
• Enhancement of Montrose's integrated environmental solutions offering

Negative

• None.

LITTLE ROCK, Ark. and DENVER, Sept. 10, 2024 /PRNewswire/ -- Montrose Environmental Group, Inc. ("Montrose" or "the Company") (NYSE: MEG), a high-growth global environmental solutions company, today announced the acquisition of Origins Laboratory, LLC ("Origins"), a leading environmental laboratory. Origins, including owners Noelle and David Mathis, will be integrated into the Company's Measurement and Analysis Segment and operate as part of Enthalpy Analytical, LLC ("Enthalpy"), a subsidiary of Montrose. Terms of the transaction were not disclosed.

Founded in Denver, Colorado in 2006, Origins is a NELAP-certified environmental testing laboratory that specializes in measuring the contamination of water, soil and air for oil and gas clients in the Rocky Mountain region. In addition to servicing the traditional measurement needs of their clients, Origins also offers advanced services for emerging market demands, such as specialized air analysis for volatile organic compounds (VOCs) and measurement of per- and polyfluoroalkyl substances (PFAS). 

Origins is an established leader, providing accurate, reliable analytical results with quick turnaround times that include the capability for same-day results. Origins' ability to provide rapid results allows clients to achieve significant cost savings by facilitating faster remediation efforts, reducing time on site, and improving overall project efficiency.

The acquisition of Origins empowers Montrose to provide laboratory services in conjunction with other environmental solutions already offered to clients in the region, resulting in an integrated, differentiated solution suite to address clients' current and changing needs as regulations continue to evolve.

"Origins represents strategic growth within our laboratory services business line, further expanding our presence and existing service offerings in the Rocky Mountain states to meet growing customer needs in this important region," said Vijay Manthripragada, President and Chief Executive Officer of Montrose Environmental Group. "Origins shares our commitment to responsive, client-focused service, supported by timely and defensible analytical data. We extend our warmest welcome to David, Noelle and the entire Origins team."

Origins Laboratory's President, Noelle Doyle Mathis added: "We are delighted to join Montrose, an organization that is focused on innovation, technical excellence and continued growth. Together we will continue to provide our clients with the exceptional service they have come to know, while expanding service offerings through the network of Enthalpy labs and suite of additional Montrose services."

Aurum Capital Connect acted as lead financial advisor to Origins Laboratory. Steptoe & Johnson PLLC acted as legal advisor to Origins Laboratory.

About Montrose

Montrose is a leading environmental solutions company focused on supporting commercial and government organizations as they deal with the challenges of today, and prepare for what's coming tomorrow. With ~3,400 employees across 100+ locations worldwide, Montrose combines deep local knowledge with an integrated approach to design, engineering, and operations, enabling Montrose 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. 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, including its Annual Report on Form 10-K for the year ended December 31, 2023, for additional information regarding the risks and uncertainties that may cause actual results to differ materially from those expressed in any forward-looking statement.

Contacts

Montrose
Investor Relations:
Adrianne Griffin
(949) 988-3383
ir@montrose-env.com

Media Relations:
Sarah Kaiser
(225) 955-1702
pr@montrose-env.com

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SOURCE Montrose Environmental Group, Inc.

FAQ

What company did Montrose Environmental Group (MEG) acquire in September 2024?

Montrose Environmental Group (NYSE: MEG) acquired Origins Laboratory, a leading environmental testing laboratory based in Denver, Colorado.

How will the acquisition of Origins Laboratory benefit Montrose Environmental Group (MEG)?

The acquisition expands Montrose's presence in the Rocky Mountain region, enhances its Measurement and Analysis Segment, and allows for the provision of integrated environmental solutions by combining laboratory services with existing offerings.

What specialized services does Origins Laboratory offer that Montrose Environmental Group (MEG) will now provide?

Origins Laboratory specializes in water, soil, and air contamination testing for oil and gas clients, offering advanced services such as specialized air analysis for volatile organic compounds (VOCs) and measurement of per- and polyfluoroalkyl substances (PFAS).

How does Origins Laboratory's rapid turnaround capability benefit Montrose Environmental Group's (MEG) clients?

Origins' ability to provide rapid results, including same-day results, allows clients to achieve significant cost savings by facilitating faster remediation efforts, reducing time on site, and improving overall project efficiency.