Environmental Services M&A Update

RESOURCE HIGHLIGHTS

• In Q1, the NYSE Arca Environmental Services Index increased by 3.5% and outperformed the S&P 500, which decreased by 4.4% over the same period.
• The median EV/EBITDA multiple for reported strategic deals in the Environmental Services sector decreased to 7.1x in Q1 from 15.0x in 2024, and the median EV/Revenue multiple for strategic buyers decreased to 1.3x from 1.8x over the same period.
• M&A deal volume in the sector decreased 9.2% in Q1 to 129 deals from 142 in Q4 2024, and decreased 2.3% from 132 in Q1 of the prior year.
• As a % of total capital invested in M&A transactions, PE participation increased in Q1 to 98.2% from 31.2% in 2024.
• North America was the most active region in Q1 with 64 deals. Most notably in North America was Apollo Global Managements’ $5.5 billion acquisition of GFL Environmental, a Canadian provider of dry and liquid waste management services, in January 2025.