Publicly traded Montrose Environmental Group Inc. of North Little Rock said Tuesday that it has acquired competitor AirKinetics Inc. of Anaheim, California, an emissions testing services provider.
Financial terms of the deal were not disclosed. The companies said AirKinetics' leadership team, including founder and president Tony Wong, will join Montrose's measurement and analysis segment.
"The addition of AirKinetics will allow us to strengthen our stack testing and emissions capabilities on the West Coast, which is home to some of the strictest local and state regulations in the country," Shawn Nelezen, senior vice president of air quality services at Montrose, said in a news release. "With nearly 30 years of experience in the emissions industry, Tony and his team understand, and have advised clients on, the multitude of air quality compliance and regulatory laws."
AirKinetics offers emissions testing services to industry and government customers primarily in California, Hawaii, Nevada, Arizona, Oklahoma, Oregon and Washington.
"In joining forces, we expand our reach throughout the West and can offer clients an array of complementary services as well as innovative new air testing technologies," Wong said. "We look forward to leveraging our understanding of complex environmental federal, state and local laws and regulation to create a best-in-class consulting solution."
The acquisition is Montrose's second in as many months. Last month, it bought TriAD Environmental Consultants, a small environmental consulting firm with a focus on the Southeast U.S. TriAD is now part of the Montrose's assessment, permitting and response segment.
Last month, Montrose (NYSE: MEG) reported a second-quarter loss of $7.8 million, down from the $13.1 million loss it posted the same quarter a year ago. Adjusted for one-time gains and costs, earnings came to 3 cents per share, which topped Wall Street expectations of 12 cents per share.
Montrose entered Arkansas in 2020 with the purchase of privately held CTEH of North Little Rock, a scientific consulting firm specializing in emergency preparedness, response and recovery, then in 2021 moved its headquarters there from Irvine, California.