Platte River Equity Expands Portfolio with Chemtech-Ford Laboratories Acquisition

In a strategic move to enhance its presence in the environmental services sector, Platte River Equity, a private equity firm based in Denver, has announced its acquisition of Chemtech-Ford Laboratories. This investment marks a crucial step in Platte River's ongoing strategy of focusing on industrial firms in North America, particularly those providing essential services in the environmental and analytical testing space.

Founded in 1953 and located in Sandy, Utah, Chemtech is a prominent environmental services provider that specializes in the testing of drinking water, wastewater, soil, and surface water. With a strong track record in delivering high-quality analytical services, Chemtech holds a significant position in the Intermountain West as one of the largest commercial laboratories, offering EPA/SM/ASTM testing methods along with NELAP accreditation for various environmental media.

Platte River’s decision to invest in Chemtech is rooted in its thesis regarding the environmental consulting sector, which emphasizes the importance of compliance-driven demands for services, particularly in water testing. This area has seen stable demand driven by regulatory requirements and the necessity for routine testing, audits, and long-term service commitments. As water quality remains a key determinant of public health, the acquisition is strategic in meeting the rising need for reliable testing services amid increasing regulatory scrutiny and public concern over environmental safety.

Peter Calamari, a Managing Director at Platte River, expressed enthusiasm about welcoming Chemtech into the firm’s portfolio. He stated, "We are excited to welcome Chemtech to the Platte River family. Its reputation for data quality, rapid turnaround times, and customer service has created a sustainable competitive advantage." This sentiment was echoed by Mike Reilly, a Principal at the firm, who noted that environmental testing is foundational to public health and stability in regulatory compliance.

Rex Henderson, President of Chemtech, highlighted the collaboration as an opportunity for growth. “We are thrilled to partner with Platte River. The firm's industry understanding and support will enable us to expand our footprint, invest in new capabilities, and continue delivering the quality and responsiveness our customers rely on,” he commented. This partnership is expected to not only strengthen Chemtech’s offerings but also align with Platte River’s long-term vision to support its portfolio companies through tailored resources and strategic insights.

In addition to strengthening Chemtech’s market position, this acquisition aligns with Platte River’s broader investment philosophy of focusing on established lower-middle-market operating companies within targeted sectors where they have substantial operating and investing experience. With over $1.7 billion in committed capital through five investment funds, Platte River maintains a significant role as a collective investor across its portfolio, ensuring alignment with management teams and stakeholders.

As the demand for environmental and analytical services continues to grow, the investment in Chemtech positions Platte River favorably to capitalize on emerging opportunities in this critical market segment. The firm’s collaborative approach and emphasis on sustainable growth make it well-suited to assist Chemtech in advancing its capabilities and expanding its service offerings.

Legal counsel for the transaction was provided by Bartlit Beck LLP, while Raymond James served as financial advisor to Platte River. As this acquisition unfolds, stakeholders within both companies and the broader environmental services industry will be keenly observing the developments and potential impact on the markets they serve.

Overall, Platte River’s commitment to investing in companies like Chemtech underscores the firm's focus on supporting essential industries that play a vital role in ensuring public health and environmental safety through reliable testing and consulting services.