Merger & acquisition (M&A) activity within and across the sustainability market remained strong in June 2023. Indeed, Sustainable Tech Partner tracked 20 M&A deals involving renewable energy and sustainable technology companies during the month.
Buyers, sellers and investors included ESG (environmental, social and governance) consulting companies, renewable energy firms, software providers, technology businesses, private equity firms and plenty more. Still, buyers and investors rarely disclosed deal valuations -- so it's difficult to pinpoint the overall health and investor interest in the sector.
For some context, here's a look at each of the 20 M&A deals that we spotted in June 2023:
1. Engineering & Sustainability Consulting - Egris Acquired McIntosh Perry: With a team of 800 engineers, project managers, and technicians spread across 21 offices in North America, McIntosh Perry will act as the North American platform for Egis. Together, they will provide end-to-end engineering solutions to clients, emphasizing sustainability and innovation, at every stage of the project lifecycle, the buyer said.
2. Renewable Power - Renantis and Ventient Energy are merging: With a total of 4.2 GW of installed capacity cross over 200 plants, the integrated business will become one of the top five European onshore wind-based energy providers, the companies said. The combined companies will offer onshore wind farms, solar plants and energy storage facilities across nine countries in Europe and the USA.
3. HVAC Software - Private Equity Acquires Optimum Energy: Founded in 2005, Optimum provides proprietary software solutions to optimize the energy consumption of HVAC systems to "deliver significant electricity and water savings while reducing carbon emissions," according to the buyer, Bernhard Capital Partners.
4. Internet of Things and Refrigeration- Johnson Controls Acquired M&M Carnot: The seller offers natural refrigeration solutions with ultra-low global warming potential (GWP), which can help customers meet their sustainability goals while meeting and exceeding environmental regulations.
5. E-Waste Recycling and IT Asset Disposition (ITAD) - Elemental Holding Group Acquired Colt Recycling and Colt Recycling Southeast: The acquired business is an e-waste recycler and ITAD group operating on the East Coast. This is Elemental's second U.S. transaction this quarter.
6. Green Data Centers - Brookfield Infrastructure and Ontario Teachers Pension Fund acquired Compass Datacenters: Compass develops data centers with concrete manufactured using CarbonCure’s CO2 reduction methodology. Moreover, construction materials and components are sourced locally to minimize the environmental impact of long-haul transportation.
7. ESG Consultancy - Labrador Acquired Corporate Communications Specialist Argyle. The deal expands Labrador's advisory, design, and environmental, social, and governance (ESG) expertise.
8. Consulting & Environmental Services - APEM Group Acquired Macro Works: The buyer is backed by private equity firm Westbridge. On a related note, APEM Group secured a +£50m debt package and additional accordion from Tikehau Capital, the global alternative asset management group, with an additional £7.5m working capital facility from Virgin Money.
9. ESG Consulting - EY South Africa Acquired EBS Advisory: EBS Advisory provides ESG advisory services to customers in Southern, East and West Africa.
10. ESG Consulting - SLR Consulting Acquired IBIS: Private equity firm Charterhouse Capital Partners backs SLR. IBIS offers ESG guidance to financial institutions in Africa and Asia.
11. ESG Consulting - SLR Consulting Acquired Carnstone: Carnstone provides sustainability and ESG advice and support to large companies and international institutions
12. Renewable Energy - Brookfield Renewable Acquired Duke Energy Renewables: The acquired business has wind, solar and energy storage power assets. The purchase price was $2.8 billion.
13. Energy Decarbonization - Technip Energies Acquired Seed Energy: This acquisition reinforces Technip Energies’ efforts to design and deliver integrated digital solutions for the decarbonized energy sector.
14. Software - ESG Acquired Pandell: The acquired business develops SaaS-based software for land and financial applications in the energy sector. The acquisition is part of a "broader strategic vision to be the end-to-end software provider that helps energy leaders thrive in an ever-changing global energy landscape," the buyer said.
15. Environmental Engineering - Stantec Acquired Environmental Systems Design (ESD): Stantec, a global sustainable design and engineering firm, is acquiring Environmental Systems Design (ESD), a 270-person engineering firm in Chicago.
16. Renewable Energy - AES Corporation Acquired the 2 GW Bellefield project in Kern County, California: The project "represents a significant step in accelerating California's commitment to achieving 100% carbon-free energy by 2045," and "strengthens AES' position as a leader in providing renewable energy solutions to corporate customers under long-term contracts," AES said. Financial terms of the deal were not disclosed.
17. Low-Carbon Transportation - TRC Companies Acquired Gladstein, Neandross & Associates (GNA): The acquired business is a North American consulting firm specializing in low- and zero-emission transportation technologies, infrastructure, and ultra-low carbon fuels for commercial transportation.
18. Environmental Consulting - Miller Environmental Group Inc. Acquired AB Environmental: AB has provided environmental response, remediation, transportation, and recycling services throughout the greater New York Metropolitan area since 1980. Miller Environmental and AB are both based on Long Island, New York. Miller is backed by private equity firm GenNx360 Capital Partners.
19. Renewable Energy - Linea Energy Acquired a 490 MWDC Solar Project in Texas: The seller was Horus Energy of London, England. The acquired project is expected to generate enough clean energy to power more than 63,000 homes, the buyer said.
20. Renewable Energy Shell Acquired 12 Solar Projects in Spain: The acquired projects have a total capacity of 1.1 gigawatts, according to Reuters.
Did we overlook or omit an M&A deal? If so, please email me the details. And don't forget to check our M&A database -- which we update regularly.
