Environmental Services M&A Update

RESOURCE HIGHLIGHTS

• In Q1, the NYSE Arca Environmental Services Index increased by 11.0% and outperformed the S&P 500, which increased 10.8% over the same period.
• The median EV/EBITDA multiple in the Environmental Services industry for reported strategic deals decreased to 8.1x in Q1 from 15.1x in 2023. There were no reported EV/EBITDA multiples for private equity deals in Q1.
• Deal volume in the Environmental Services sector decreased 15.9% in Q1 to 132 deals from 157 deals in Q4 2023, and decreased 29.4% from 187 deals in Q1 of the prior year.
• As a % of total capital invested in M&A transactions in Q1, PE participation declined significantly to 23.6%, down from 49.2% in 2023.
• North America was the most active region in Q1 with 60 deals. Most notably in the North American market was Clean Harbors’ $400.0 million acquisition of HEPACO in March 2024.