January 31, 2019
Bloomfield Hills, Michigan - 1 Priority Environmental Services, LLC, a premier provider of specialty environmental services in Texas and Louisiana, and a portfolio company of O2 Investment Partners, LLC, announced today that is has completed a merger with Earth Services & Abatement, Inc., a leading provider of environmental remediation and selective demolition services in the Rocky Mountain and Midwest regions.
The combination creates one of the top five abatement firms by revenue in the U.S., according to Engineering News-Record’s top abatement contractors list. Under the merged entity, both firms will maintain current operations and leadership, with Gary Caldwell remaining as CEO of 1 Priority and Kory and Kristian Mitchell as Co-Presidents of ESA.
“We are extremely excited to partner with ESA and we believe their premier reputation for quality service and thoroughness is a perfect complement to 1 Priority and will allow both companies to better serve their clients,” said Caldwell. “This partnership significantly enhances our capabilities and geographic reach. Between 1 Priority and ESA, we will be able to serve clients from the Southeast to the Rocky Mountains to the Midwest.”
At the time of the merger, ESA had an EMR rating of 0.77, and the combined business will have aggregate insurance coverage and bonding capacity of $10 million and $60 million, respectively.
“This merger allows both firms to tap into additional resources and expertise that will lead to better service and turn-key operations for our clients,” said Kory Mitchell. “1 Priority has tremendous market strength in Texas and Louisiana for abatement services and we look forward to expanding our geographic reach in water and soil remediation. Our alliance creates a premier platform with offices in Denver (Colorado), Des Moines (Iowa), Casper (Wyoming), Rapid City (South Dakota), Omaha (Nebraska), Fort Worth, Houston, San Antonio, Corpus Christi, Gatesville, and Lubbock (Texas), as well as Shreveport and Baton Rouge (Louisiana).”
Luke Plumpton of O2 Investment Partners commented, “The combination of 1 Priority and ESA creates one of the largest abatement companies in the country that also has significant capabilities in related environmental and specialty infrastructure services, including remediation and decontamination. We’re thrilled to partner with Kory and Kristian and to support them in accelerating the growth of ESA.”
About O2 Investment Partners:
O2 Investment Partners is a Midwestern based private equity firm that seeks to acquire a majority interest in lower middle market manufacturing, niche distribution, and select service and technology businesses. The firm invests in businesses with earnings growth potential and a clear path to the creation of shareholder value.
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