Audax Private Equity sells Liquid Environmental Solutions

Audax Private Equity sells Liquid Environmental Solutions

Audax Private Equity has announced the sale of Liquid Environmental Solutions (LES) to Goldman Sachs Alternatives, marking a significant transaction in the environmental services sector. The deal underscores the growing interest from private equity firms in the green services industry, driven by regulatory pressures and infrastructure spending.

LES, a U.S.-based provider of nonhazardous liquid waste management services, was founded in 2002 and operates a network of 64 service locations and 26 treatment facilities across the country. The company manages waste from various sources, including grease traps, oil water separators, and used cooking oil, serving a diversified customer base in sectors such as hospitality, education, and environmental services [2].

The acquisition by Goldman Sachs Alternatives, a division of the renowned investment bank, aligns with its strategy of investing in circular economy solutions. The deal will see LES expand its service network and invest in new infrastructure, driven by the robust growth potential in the nonhazardous liquid waste management market.

The transaction highlights the sector's appeal to private equity investors. The environmental remediation sector has seen a 21.2% year-over-year increase in M&A activity in 2024, with a significant portion driven by specialized players in hazardous waste management, PFAS remediation, and wastewater treatment [1]. This trend reflects a calculated shift toward sectors where long-term contracts and regulatory compliance create durable revenue streams.

Investment implications for the sector are compelling. For investors, the environmental remediation services sector offers a mix of regulatory-driven demand, government-backed contracts, and long-term growth potential. Key areas to consider include PFAS remediation firms, wastewater and water infrastructure providers, and Brownfield/Superfund site operators [1].

The sale of LES to Goldman Sachs Alternatives is a testament to the sector's growth and the strategic capital allocation strategies of private equity firms. As the environmental remediation sector matures, consolidation and value creation through innovation will be key drivers of growth.

References:
[1] https://www.ainvest.com/news/strategic-capital-allocation-environmental-remediation-rise-private-equity-green-services-sector-2507/
[2] https://www.wastetodaymagazine.com/news/goldman-sachs-alternatives-to-acquire-liquid-environmental-solutions/