Montrose Environmental Group Inc. (NYSE: MEG) of North Little Rock on Wednesday announced an agreement to acquire Canadian environmental and engineering consulting firm Matrix Solutions Inc.
The deal is the latest in a series of acquisitions aimed at expanding Montrose's consulting business. Financial terms of the deal were not disclosed. The transaction is expected to close in the second quarter of 2023.
In a news release, Montrose said that Matrix will form the platform for its consulting business in Canada and help broaden support for clients across the continent.
Matrix, which employs 570 people, advises and supports more than 1,100 private and public sector clients from its three main service lines, which include contaminated site assessment; remediation and reclamation; environmental sciences and regulatory planning; and water resources engineering and management.
The firm was founded in 1984 and now has 19 office locations across Canada.
Doug Matthys, who Montrose hired this year to oversee the expansion of its consulting business, said Matrix will help the company compete against larger firms while bringing "regional expertise and personal touch to compete with local niche players."
CEO Vijay Manthripragada in March teased forthcoming acquisitions, saying the deals are part of the company's plan to execute on organic growth opportunities. Earlier this year, Montrose announced the acquisition of a Delaware environmental consulting firm and a California company that specializes in analysis of organic pollutants.
In 2022, the company spent $28.6 million in cash to acquire two consulting firms and an emissions testing services provider.
Montrose's losses widened in the fourth quarter of 2022 as demand for pandemic-related services continued falling. The company posted a quarterly loss of $10.8 million, or 50 cents per share, compared to a loss of $1.5 million in the same quarter a year ago.
Montrose is schedule to report earnings for the first quarter of 2023 on Tuesday.