EQT's EQT Infrastructure VI fund has agreed to acquire a majority position in Heritage Environmental Services (HES). Founded in 1970, HES is a family-owned provider of sustainability and industrial waste management services in the US. The company is headquartered in Indianapolis, I.N., and has 37 facilities across the U.S. HES manages approximately 660 thousand tons of industrial waste per year.
"EQT and HES are proven business leaders who share a like-minded approach to environmental stewardship, and this acquisition aligns directly with EQT's thematic approach of investing in businesses that provide essential environmental services to society," said Juan Diego Vargas, partner within the EQT Infrastructure Advisory team. "EQT is excited to partner with the entire HES team and to invest in organizational, operational, and digital technology initiatives that will enhance HES's ability to provide reliable and compliant final disposal to complex industrial waste challenges."
EQT previously partnered with The Heritage Group, of which HES is a subsidiary of, on its investment in Cirba Solutions. At transaction close, The Heritage Group will continue to remain a shareholder in HES, building on the partnership with EQT.
EQT's investment model represents several growth opportunities for HES. EQT aims to work closely with HES – providing both capital and operational support – to achieve results for all stakeholders. Under EQT's ownership, HES will continue to differentiate its service offerings with a focus on innovation and sustainable services.
"EQT has been a strong partner to The Heritage Group, and we are excited to expand our relationship," said Jeff Laborsky, HES CEO. "Importantly, the concepts of a similar culture, treatment of our employees, respect for the communities we serve, and commitment to a long-term partnership with THG were key criteria in selecting EQT as our partner."
The transaction is subject to customary conditions and approvals. It is expected to close in the first quarter of 2024.
