Environmental services provider Montrose Environmental Group Inc. of North Little Rock (NYSE: MEG) on Wednesday announced the acquisition of Canadian consulting firm Paragon Soil & Environmental Consulting Inc.
Financial terms of the transaction were not disclosed.
Paragon, based in Edmonton, Alberta, provides services for clients in the oil sands, pipeline, mining and power sectors across western Canada. In a news release, Montrose said the deal strengthens its presence in the region while adding environmental expertise in select soil and reclamation services.
Lee Waterman, president of Paragon, and other members of the company’s senior leadership team will join Montrose’s consulting and engineering services team within Montrose’s remediation and reuse segment.
“Preserving and protecting natural resources across western Canada by balancing responsible land stewardship with resource utilization is paramount for the Paragon team,” Waterman said in a statement. “We are excited to partner with Montrose to expand our capabilities and resources to serve clients with services rooted in science, stewardship and safety.”
The acquisition of Paragon also includes Paragon’s active limited partnership, Paragon Infinity, according to the release. The limited partnership is operated in conjunction with Infinity Métis Corp., a wholly owned Indigenous company with the McMurray Métis Local 1935 community in the Wood Buffalo region in northeast Alberta.
The acquisition is among more than 70 that Montrose has completed over the past decade to grow its reach and capabilities. It follows the April purchase of Engineering & Technical Associates Inc. (ETA) of Walbridge, Ohio, and the February acquisitions of Two Dot Consulting LLC of Arvada, Colorado, and Epic Environmental Pty. Ltd., an environmental science and engineering consultancy in Australia.
Montrose reported a loss of $13.4 million in the first quarter, narrowing its loss of $14.7 million from the same quarter a year ago. Revenue in the quarter rose to $155.3 million, which the company primarily attributed to organic growth in two segments: assessment, permitting and response, and measurement and analysis.
Shares of the company rose nearly 5% Wednesday morning to $46.04. Year to date, shares were up more than 44%.
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