LITTLE ROCK, Ark. & WALBRIDGE, Ohio - Montrose Environmental Group, Inc. (NYSE: MEG), a provider of environmental solutions, announced today the acquisition of Engineering & Technical Associates, Inc. (ETA), a company specializing in Process Safety Management (PSM). This move is part of Montrose's strategy to enhance its Assessment, Permitting & Response segment.
Vijay Manthripragada, President and CEO of Montrose, expressed enthusiasm about integrating ETA into their operations, citing a long history of collaboration on client projects. He anticipates that ETA's expertise will significantly bolster Montrose's Environmental, Health, Safety & Security advisory services.
The co-founders of ETA, Dan and Lisa Wilczynski, shared their positive outlook on joining forces with Montrose. They believe that the merger aligns with both companies' cultures and commitment to client service, and will lead to the development of a leading PSM offering.
In conjunction with the acquisition announcement, Montrose Environmental also revised its 2024 financial forecast. The company has raised its full-year 2024 Revenue and Consolidated Adjusted EBITDA guidance due to strong organic performance and the impact of recent acquisitions.
The updated revenue is projected to be between $690 million and $740 million, an increase from the previously estimated $675 million to $725 million range. The Consolidated Adjusted EBITDA is now expected to fall between $95 million and $100 million, up from the initial forecast of $90 million to $95 million.
Manthripragada attributes the improved financial outlook to effective cross-selling initiatives and the collective efforts of Montrose employees in delivering exceptional client service, which he believes contributes to the company's ongoing value creation.
Legal counsel for the transaction was provided by Niehaus Law. Montrose Environmental Group emphasizes that the updated financial guidance excludes any potential benefits from future acquisitions.
This news is based on a press release statement from Montrose Environmental Group, Inc.
InvestingPro Insights
As Montrose Environmental Group, Inc. (NYSE: MEG) continues to expand through strategic acquisitions like Engineering & Technical Associates, Inc., the company's financial health and stock performance are of keen interest to investors. According to real-time data from InvestingPro, Montrose has a market capitalization of $1.2 billion, reflecting its significance in the environmental solutions sector. The company has demonstrated a solid revenue growth of 14.66% over the last twelve months as of Q4 2023, indicating a positive trajectory in its operations. This may support the company's raised financial forecast for 2024, with revenue now projected to be between $690 million and $740 million.
InvestingPro Tips highlight that Montrose is expected to see net income growth this year, which could be a reassuring factor for investors looking at long-term value. Moreover, the company has been trading at a high EBITDA valuation multiple, suggesting that the market may be anticipating future earnings growth, potentially due to strategic initiatives like the recent acquisition.
Investors interested in Montrose's stock should be aware of its volatility, as InvestingPro Tips indicate that the stock price movements have been quite fluctuating. Nonetheless, Montrose's liquid assets exceed short-term obligations, providing the company with financial flexibility to manage its operations and growth effectively.
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