Q4 2024

Environmental Services M&A Update

In Q4, the NYSE Arca Environmental Services Index decreased by 3.3% and was outperformed by the S&P 500, which increased by 3.0% over the same period.
The median EV/EBITDA multiple for reported private equity deals in the Environmental Services sector decreased to 4.6x in 2024 from 13.3x in 2023, and decreased slightly for strategic deals to 15.0x from 15.1x in the prior year.
M&A deal volume in the sector decreased 4.1% in Q4 to 142 deals from 148 deals in Q3, and decreased 9.6% from 157 deals in Q4 of the prior year.
As a % of total capital invested in M&A transactions, PE participation decreased in 2024 to 31.2% from 49.2% in 2023.
Europe was the most active region in Q4 with 71 deals. Most notably in Europe was Norsk Gjenvinning’s (“NG Group”) $851.6 million acquisition of Denmark-based Fortum’s recycling and waste business in November 2024.