• Acquired by ICV Partners on 27 January
• Eyeing residential asbestos abatement and ancillary services

Environmental Remedies (ERI), a Hayward, California-based asbestos abatement service provider, is actively seeking acquisitions in the state, said Jermaine Warren, managing director of ICV Partners.

ICV acquired ERI for undisclosed terms on 27 January. Founded in 2004, ERI specializes in providing asbestos abatement services for remediation companies, insurance companies, and homeowners across California. ERI has focused on remediating fire and water damage, Warren said. The company has three locations: in California’s Bay Area, San Diego and Inland Empire.

ERI has never made acquisitions. ICV plans to look for acquisitions for the platform around California. “These are strategic acquisitions – not a rollup strategy,” Warren said.

Down the road, the company could look at acquiring in adjacent states such as Washington, Nevada and Arizona. Warren said there is a small universe of competitors with size and brand recognition including PW Stevens and Incline Equity-backed Alliance Environmental Group. Remediating asbestos after fire or water damage typically costs less than USD 10,000, he said.

ERI partners with companies such as Servpro, Servicemaster and Rainbow Restoration, he said. He declined to disclose revenue but said the company has close to 100 employees and is profitable.

There is no minimum size for add-on acquisitions and they could be as large as USD 30m in revenue, Warren said. ERI likes firms with insurance exposure, with the businesses weighted toward emergency related services, not discretionary services by renovation contractors, he said. Providers of ancillary services in addition to asbestos are of interest – such as remediation for lead, radon, mold, light demolition and content management (inventory management to file claims in the event of water or fire damage).

ERI provides mold and lead remediation in addition to asbestos mediation, he said.

Baird advised on the buy side. Akin Gump was the law firm. Stellus Capital was lender. Bridge House Advisors provided environmental consulting. ERI was advised by Intrepid Investment Bankers with legal representation from Greenberg Glusker.