Sentinel sells Apex Companies to Morgan Stanley Capital Partners

NEW YORK, January 31, 2023 – Sentinel Capital Partners, a private equity firm that invests in promising midmarket companies, today announced the sale of Apex Companies, a leading provider of end-to-end environmental consulting and engineering solutions, to Morgan Stanley Capital Partners. Sentinel Capital Partners will maintain a minority position in Apex post-closing. Financial terms of the deal were not disclosed.

Apex, headquartered in Rockville, Maryland, is a leading environmental consulting and engineering firm specializing in a broad range of environmental and infrastructure needs. Apex serves a large and diverse client base spanning both the public and private sectors and a broad range of end-markets, including energy, industrial, manufacturing, real estate, retail, and telecom. An established leader in stormwater compliance and environmental services, Apex also offers a robust portfolio of services in water infrastructure and resources, compliance and assurance (including ESG consulting), health and safety, transportation, and civil engineering. Apex has over 1,100 professionals operating across 50 nationwide offices and also has the largest stormwater management and compliance practice in the country.

"We've had an excellent partnership with Sentinel over the past four years," said Dave Fabianski, chief executive officer of Apex. "Sentinel's support and guidance have helped us achieve our strategic growth initiatives and their commitment to our people has been absolutely first rate. We appreciate their partnership and the way the Sentinel team engaged with our team."

Sentinel acquired Apex in November 2018 and since then has completed four successful add-on acquisitions—the Health Safety and Environmental Consulting Business of Bureau Veritas, which included solutions across safety, ergonomics, sustainability, compliance, and management systems; CME Engineering LP and CME Operations LP, regional service providers in civil, mining, water, and environmental engineering serving clients across the Mid-Atlantic; Environmental Partners, a regional leader of engineering services across New England; and Retention Pond Services, a regional leader in stormwater compliance, maintenance and repair services in the Mid-Atlantic, Southeast, and Midwest.

"Apex's management and employees are highly talented and committed, and we have greatly enjoyed working alongside them. This team has established Apex's nationwide reputation as a leader in water resources and environmental compliance, has built an impressive track record, and has well positioned Apex to continue its impressive growth trajectory," said Michael Fabian, a Sentinel Partner. "Our investment in Apex also reflects Sentinel's ongoing commitment to ESG."

Sentinel has extensive experience investing in infrastructure and environmental engineering and consulting businesses. In addition to Apex, other investments in the sector include TranSystems, a provider of engineering, architectural, and design consulting solutions; and Trinity Consultants, a provider of air quality consulting and compliance services. Apex is Sentinel's fourth exit in the last 12 months. The other three are Captain Ds, the leading seafood quick service restaurant brand; Altima Dental, a leading dental support organization in Canada; and Nekoosa, a leading manufacturer of specialty paper and film products used in the graphics and commercial print markets.

Robert W. Baird & Co., Houlihan Lokey, and AEC Advisors served as financial advisors to Apex.