Instrumentation Monthly Test | Measurement | Control
Australian environmental management technology firm Envirosuite Limited has acquired EMS Brüel & Kjær (EMS), a noise and vibration monitoring technology company. The transaction was completed on Friday February 28 2020, following shareholder approval.
The capital raise for the purchase consideration was led by Bell Potter (Melbourne) which, secured commitments of $70 million from institutions and sophisticated investors. A further $5 million has been secured directly from Envirosuite’s Directors and Management network and $9.28million raised from a Share Purchase Plan (SPP) for the provision for working capital, integration and other costs associated with the raise.
EVS and EMS have complementary capabilities across air, odour, dust, wastewater, noise and vibration management, combining to increase capability and drive world-leading innovation. The transaction positions Envirosuite as a global leader in the provision of environmental monitoring and management technologies for industry and government.
Together, the combination of Envirosuite & EMS can transform the way industry and governments utilise data and technology to tackle environmental challenges more intelligently, producing better business and community outcomes.
“Envirosuite and EMS are two global businesses with roots in Australia and a shared focus on developing world-leading environmental technology. It’s an exciting day as we officially receive finalise the acquisition and bring the two companies together,” said Peter White, CEO of EVS.
“As a leader in noise and vibration monitoring, compliance and community engagement and working with hundreds of leading airports around the world, EMS will strengthen and complement Envirosuite’s odour, air quality and wastewater management capabilities.
“Rising community awareness and activism is driving regulatory responses and elevating social licence pressures on industry to reduce their environmental footprint while investors seeking returns demand greater productivity from operations. Adopting technologies that can address both pressure points is the only way forward for industry to deliver on both of these otherwise opposing stakeholder expectations and coexist with their local communities while meeting their obligations to financial stakeholders,” he said.
Both companies have global presence and the combined group is expected to continue to expand strategically with new solutions, aligned acquisitions and developing opportunities in growth markets particularly through Envirosuite’s recent entry into China.
“Against the backdrop of China’s growing urban environments, a major focus for the market will be industrial precincts, dust suppression for mining, transport and construction, and waste and wastewater including sewer network asset management.
“The acquisition of EMS is expected to significantly accelerate EVS’s growth in the market as it opens up new opportunities in noise and vibration monitoring for China’s more than 200 airports, major construction and other smart city applications,” Mr White said.
The transaction brings together 280 staff operating in over 40 countries with plans to expand strategically leveraging on the expanded solution suite.
Macquarie Capital, a current investor in EMS, will become the largest shareholder in EVS and is expected to take a seat on the Board to help drive the expansion strategy. Macquarie Capital’s efforts towards this have been explicitly documented through the signing of a referral agreement that forms part of the conditions of the overall transaction. Under this agreement Envirosuite hopes to leverage Macquarie’s global network across utilities, infrastructure and industry.
Macquarie Capitals’ investment in EVS and the referral agreement is a clear demonstration of its commitment to this sector.
