H.I.G. Capital News
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H.I.G. Capital Affiliate Completes Acquisition of Severn Trent Laboratories
STL Merges with TestAmerica to Create New Environmental Testing Market Leader
MIAMI - December 29, 2006 - The previously announced acquisition of Severn Trent Laboratories, Inc. ("STL") by an affiliate of H.I.G. Capital ("H.I.G."), a premier private investment firm, has been completed. STL is a leading environmental testing firm with 32 laboratories throughout the United States. STL provides a wide variety of analytical testing services, including dioxin detection and air analyses; indoor air quality, food and consumer products testing; and a range of products used in the sampling and testing process. STL has been combined with TestAmerica, a leading company in the environmental and indoor air quality testing industry to create an unprecedented industry leader. TestAmerica is currently a portfolio company of H.I.G. The seller was Severn Trent plc, a publicly traded U.K. corporation. Terms of the transaction were not disclosed.
Both STL and TestAmerica are widely recognized for their quality testing and strong customer service focus. The combined company will have generate more than $350 million in revenues and have 54 analytical laboratories and dozens of service centers and microlabs strategically located across the United States. The company will provide testing and sampling related products through its QED Environmental Systems division, Metco and TestAmerica Drilling.
STL President and CEO Rachel Brydon Jannetta commented, "We are excited to be partnering with a premier private equity firm who shares our vision for growth. Together, we will continue to provide excellent service to our valued customers across a broader base of laboratories and service centers. In merging with TestAmerica, STL will enter a new and exciting growth phase which will provide long term benefits for all stakeholders."
Tom Barr, CEO of TestAmerica commented, "This combination is a defining moment for TestAmerica and STL. We look forward to building on our combined strengths to provide the best possible service to our clients, create a positive and rewarding working environment for our employees, and realize the potential of the new company."
Anthony DiSimone, Managing Director of H.I.G., commented, "We look forward to combining STL and its outstanding management team with TestAmerica as we continue to build the premier environmental testing company in the United States. H.I.G. is committed to growing the environmental testing business, and believes that STL’s analytical testing, indoor air quality, and sampling and testing products are highly complementary to TestAmerica’s current service offerings. The mission of both TestAmerica and STL is to provide the highest quality environmental testing services and products to our clients. Joining forces provides us with even greater opportunities to fulfill that mission. It is a great outcome for all involved."
TestAmerica is a leading provider of environmental testing, servicing clients through its four divisions. The analytical testing division performs tests in scientific laboratories to detect trace level organic and inorganic contaminants in soil, water, waste, and air samples that are shipped from industrial processing and other sites that are being investigated, monitored or remediated for the presence of harmful substances. EMLab, the analytical mold testing division, specializes in the analysis of molds, yeasts, bacteria, and allergens. The air emissions sampling division collects air samples from the emissions of industrial processes that are then processed and tested by the company’s fully-equipped, on-site mobile laboratories to determine their compliance with applicable environmental regulations. The drilling division drills wells through complex geologies for the environmental testing, monitoring and remediation of industrial processing sites, government/military facilities, gas stations, and other sites that may potentially contain harmful substances in soil, water, or sludge. For more information, visit TestAmerica online at www.testamericainc.com.
About Severn Trent Laboratories
Severn Trent Laboratories, Inc. (STL) is the industry's leading environmental testing company. Operations in the United States include 32 laboratories, 16 Service Centers and QED Environmental Systems, Inc., the leading supplier of groundwater sampling equipment and remediation pumping systems. STL affiliates include the Aerotech P&K team, which brings together the capabilities of Aerotech Laboratories, Inc. and P&K Microbiology Services, Inc. STL employs over 2,100 people. For more information, visit STL online at www.stl-inc.com.
About H.I.G. Capital
H.I.G. Capital LLC ("H.I.G.") is a leading private equity and venture capital investment firm with more than $3 billion of equity capital under management. Based in Miami, and with offices in Atlanta, Boston, and San Francisco, H.I.G. specializes in providing capital to small and medium-sized companies with attractive growth potential. H.I.G. invests in management-led buyouts and recapitalizations of profitable and well managed manufacturing or service businesses. H.I.G. also has extensive experience with financial restructurings and operational turnarounds. Since its founding, H.I.G. has completed more than 75 transactions. The firm currently manages a portfolio of more than 40 companies with combined revenues in excess of $5 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.