Swedish private-equity firm, EQT, has announced its agreement to acquire a majority stake in Heritage Environmental Services. The Indianapolis-based company specializes in sustainability and industrial waste management services in the U.S.
Heritage Environmental Services operates 37 facilities strategically located in key industrial hubs across the country. With a workforce of nearly 1,600 full-time employees, the company manages approximately 660,000 metric tons of industrial waste annually on behalf of over 1,800 customers.
The demand for industrial waste management services is rapidly growing due to several factors, including U.S. industrial output growth, onshoring of manufacturing, bipartisan policy incentives, and outsourcing.
EQT will acquire the majority stake from the Heritage Group, a company it has previously partnered with on investments such as Cirba Solutions, a battery recycling materials and management company. The Heritage Group will retain its position as a shareholder in Heritage Environmental Services.
While the financial terms of the deal have not been disclosed, EQT has revealed that its EQT Infrastructure VI fund is projected to be 20%-25% invested based on the target fund size.
The transaction is expected to be finalized in the first quarter of 2024, pending necessary conditions and approvals.
