EQT Obtains Majority Stake in Heritage Environmental Services

EQT Infrastructure VI fund has reached an agreement to acquire a majority stake in Heritage Environmental Services (HES) from The Heritage Group. HES, a family-owned company founded in 1970, is a prominent provider of sustainability and industrial waste management services in the US. Headquartered in Indianapolis, the company operates 37 regulated facilities strategically located in key industrial hubs, managing approximately 660 thousand tons of industrial waste annually for over 1,800 customers.

Industrial waste management is crucial for environmental protection and sustainable industrial practices. HES, with its extensive operational history and national footprint, is well-positioned to meet the increasing demand for industrial waste management services, driven by factors such as US industrial output growth, manufacturing onshoring, and policy incentives like the CHIPS and Science Act.

Following the transaction, The Heritage Group will remain a shareholder in HES, continuing the trusted partnership with EQT.

EQT's investment model aims to unlock growth opportunities for HES. The commitment includes providing capital and operational support to enhance HES's differentiation in services, with a focus on innovation and sustainability. The plan involves expanding the team, implementing operational upgrades, strengthening customer partnerships, and building greater trust with industrial clients.

The transaction is expected to close in Q1 2024. Nomura Greentech and Simpson Thacher & Bartlett advised EQT Infrastructure, while Truist Securities and Kirkland & Ellis LLP supported The Heritage Group. Following the deal, EQT Infrastructure VI is expected to be 20-25 percent invested, considering the target fund size and existing investments.