Dive Brief:

• The energy transition arm of Blackstone has acquired environmental testing and compliance services provider Alliance Technical Group from Morgan Stanley, the private-equity firm announced Tuesday.
• Neither Blackstone or Morgan Stanley disclosed financial terms of the transaction. The sale was made through Morgan Stanley Capital Partners, the bank’s North America-focused middle-market private-equity group operating under its alternative investment arm, Morgan Stanley said in a separate release.
• ATG helps companies achieve sustainability goals and navigate the evolving regulatory landscape by providing services like environmental consulting. The company also offers compliance, auditing and reporting guidance and on-site testing and emissions monitoring, according to its website.

Dive Insight:

ATG was founded in 2000 and now has over 60 offices across the U.S. and Canada. The Decatur, Alabama-headquartered environmental services company also offers solutions like emissions reduction to waste abatement and has clients across a broad range of industries, according to its website. ATG’s clients include companies in building and construction, energy and power, food and consumer goods, oil and gas and data centers.

Morgan Stanley’s private-equity division acquired a controlling interest in ATG in 2021. The bank, through MSCP, said its investment has helped the company scale substantially.

MSCP said in a Tuesday release that its support for ATG has “broadened Alliance’s capabilities, enhanced its technical depth, and positioned the company as a differentiated partner to customers navigating increasingly complex environmental standards.”

Senior executives at Blackstone called ATG a “clear market leader in emissions testing and monitoring” in a Tuesday release and said the private-equity firm would leverage its “scale and resources to help support ATG’s continued growth, serving its existing and new customers across the power, energy and industrial sectors.”

Blackstone’s acquisition of ATG aligns with other energy transition-focused transactions it has made through Blackstone Energy Transition Partners. These include deals with electric utility product manufacturer Maclean Power Systems, natural gas power plant Hill Top Energy Center, data analytics energy intelligence platform Enverus, and renewable energy projects engineering and design firm Westwood Professional Services.