H.I.G. Capital News


John Black
H.I.G. Capital, L.L.C.

Anthony DiSimone
H.I.G. Capital, L.L.C.

TestAmerica Environmental Services, LLC, a portfolio company of H.I.G. Capital, announced the acquisition of the Sequoia Laboratory Network.

November 5, 2004 - TestAmerica Environmental Services, LLC (“TestAmerica”), a portfolio company of H.I.G. Capital, announced the acquisition of the Sequoia Laboratory Network (“Sequoia”). TestAmerica has more than twenty analytical testing division locations concentrated in the Eastern, Southern, and Midwestern United States. Sequoia, comprised of six operating companies (Sequoia Analytical, Del Mar Analytical, North Creek Analytical, Great Lakes Analytical, Star Analytical and Oceanic Analytical), has more than twenty locations primarily concentrated in the Western United States. The combined company will offer clients a full suite of environmental testing services and the greatest geographic coverage in the industry.

Tom Barr, CEO of TestAmerica, commented, “This is a very exciting time for TestAmerica and Sequoia. The combination of these two well-respected companies, their management and employees, together with the financial backing of H.I.G., will enable us to deliver unparalleled service to our clients. Together, we will achieve my long-held goal of developing a true nationwide network of laboratories. Our purpose is to provide the best product to our clients, a positive and rewarding working environment for our staff and excellent returns to our stockholders.”

Art Burton, Chairman of Sequoia, commented, “The network has grown so substantially that good sense dictates expanding and transitioning the ownership position to include a major private equity investor. This will provide our group with the financial strength to advance to the next level in a way that is consistent with our history, philosophy, and value system. We look forward to working with TestAmerica and H.I.G. to continue to serve our valued clients and provide our staff with enhanced career opportunities.”

Anthony DiSimone, a principal at H.I.G. Capital, commented, “We look forward to continuing our support of the combined company and growing the business together. We are confident that coupling these two outstanding management teams will further enhance our operational excellence and industry leadership. This transaction is a great outcome for our clients and employees."

TestAmerica provides environmental services 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.

Sequoia offers analysis of air, soil, water, and hazardous waste samples for government agencies, individuals, environmental consultants and industrial clients. Sequoia’s professional staff has expertise in the areas of microbiology, bioassay, hydrocarbon contamination, and other organic and inorganic procedures.

H.I.G. Capital is a leading private equity and venture capital investment firm with more than $1.5 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, and in promising early-stage technology companies. H.I.G. also has extensive experience with financial restructurings and operational turnarounds. Since its founding, H.I.G. has completed in excess of 70 transactions. The firm currently manages a portfolio of more than 40 companies with combined revenues in excess of $5 Billion.