CTEH Acquisition: Key Details, Impact, and What Comes Next

Montrose Environmental Group's acquisition of CTEH marks a significant milestone in the environmental consulting industry. By integrating CTEH's expertise in emergency preparedness, response, and recovery, Montrose enhances its capabilities to address complex environmental challenges. This strategic move positions Montrose as a global leader, expanding its service offerings and meeting the growing demand for qualified responders.

What Is CTEH?

Founded in 1997, CTEH specializes in environmental and scientific consulting services. Their core offerings include health and safety measures, expert strategic consulting, risk mitigation planning, emergency response, and recovery services. CTEH stands out in the market with its unmatched experience in exposure assessment and toxicology, comprehensive service coverage, and a proactive approach to health and safety. Additionally, their 24-hour emergency response hotline ensures immediate assistance, highlighting their commitment to readiness and rapid response.

Who Acquired CTEH?

Montrose Environmental Group, Inc. plays a pivotal role in the environmental consulting industry, offering a wide array of services such as leak detection and repair, soil and groundwater remediation, water treatment, biogas solutions, regulatory consulting, and PFAS solutions. Serving diverse markets like power generation, chemical manufacturing, and real estate development, Montrose combines global reach with local expertise. The company is recognized for its innovative approach to environmental challenges and its commitment to regulatory compliance.

When Was CTEH Acquired?

Montrose Environmental Group acquired CTEH on April 14, 2020. This acquisition occurred during a period marked by increasing natural disasters and aging infrastructure, which heightened the demand for experienced responders. The strategic move aimed to bolster Montrose's capabilities in emergency preparedness, response, and recovery, aligning with industry trends that emphasize the need for robust environmental and safety solutions.

Why Was CTEH Acquired?

• Market Expansion: The acquisition of CTEH allows Montrose to broaden its market presence and service offerings, particularly in emergency preparedness, response, and recovery. This strategic move positions Montrose as a global leader in environmental solutions, enabling them to address a wider range of health, safety, environmental, and toxicological challenges.
• Technology Integration: CTEH's advanced technology and data-driven approach to resolving complex challenges will be integrated into Montrose's operations. This includes services like environmental data collection, biosecurity, and personnel tracking, which enhance Montrose's ability to provide comprehensive and effective solutions to their clients.
• Competitive Advantage: By incorporating CTEH's team of internationally-recognized experts and their decades of field-tested experience, Montrose strengthens its competitive position. The combined expertise and resources of both companies allow Montrose to offer a broader and more effective range of services, helping clients address current and future environmental challenges more efficiently.

Acquisition Terms

• Acquisition Price: The terms of the transaction were not disclosed.
• Payment Method: The acquisition was financed by funds managed by Oaktree Capital Management L.P.
• Key Conditions or Agreements:
  • Montrose partnered with funds managed by Oaktree Capital Management L.P. to finance the acquisition.
  • Montrose was advised by BofA Securities, Inc. and Gibson, Dunn & Crutcher LLP.
  • CTEH was advised on the transaction by Stephens Inc. and Friday, Eldredge & Clark, LLP.

Impact on CTEH

The acquisition of CTEH by Montrose Environmental Group has led to significant changes in operations and management. CTEH's operations are now integrated into Montrose's existing structure, allowing for a more streamlined approach to environmental solutions. This integration has also expanded CTEH's team, bringing in additional expertise and resources to enhance their service offerings. The leadership at CTEH, including co-founder and CEO Phil Goad, has expressed excitement about the partnership, indicating a positive outlook on the changes.

In terms of product offerings and services, the acquisition has broadened the scope of what CTEH can provide. Leveraging Montrose's resources, CTEH now offers enhanced capabilities in environmental data collection, GIS, safety, incident management, industrial hygiene, disaster recovery, toxicology, and human health consulting. While specific employee and customer reactions are not detailed, the overall sentiment appears positive, with the expanded services likely benefiting clients who rely on CTEH for comprehensive environmental and safety solutions.

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