Englobe is a leading integrated provider of environmental engineering and remediation services and the complementary services of geotechnical inspection and engineering, material testing, and other related professional services.
Investment
C$60 million
Fund
ONCAP II
Period
March 2006 – Present
ONCAP Team
Transaction Summary
ONCAP created Englobe Corp. (“Englobe”) as a platform to execute on its investment thesis pertaining to environmental and engineering services consisting of the acquisitions of Environmental Management Solutions Inc., Biogénie S.R.D.C., Celtic Technologies and LVM Inc.
Business Description
Headquartered in Quebec City, Quebec, Englobe is a leading integrated environmental services company specializing in the management of contaminated soils and organic-based waste streams, with an emphasis on beneficial reuse. The company is also a leading provider of complementary geotechnical engineering and inspection, material testing, building sciences, and other professional related services in Canada. With approximately 1,800 employees, Englobe offers cost-effective solutions to government, commercial, and industrial clients in Canada, the United Kingdom and France.
Investment Thesis
The thesis underpinning Englobe is based on the increasing demand for environmental services stemming from society’s increasing environmental sensitivity as well as the growing need to redevelop infrastructure as well as other brownfield sites. Englobe also exhibits several attractive investment attributes, including: (i) strong cash flow profile;
(ii) difficult to replicate market position (through soil treatment, composting and material testing lab facilities, associated permits, operational know-how, treatment technologies and processes, and relationships with ultimate outlets for waste streams);
(iii) advantaged position in the highly fragmented environmental and geotechnical services sectors; (iv) significant organic growth potential through its participation in growing volumes of contaminated soils and organic waste being increasingly diverted from landfills; and (v) operating in a highly fragmented market for geotechnical services which should provide opportunities to consolidate smaller testing and inspection firms, particularly in Western Canada.
