Houlihan Lokey Advises VLS Environmental Solutions

Houlihan Lokey is pleased to share that VLS Environmental Solutions (VLS), a portfolio company of I Squared Capital, has acquired Texas Molecular, one of the largest independent providers of industrial waste sequestration services in the United States. With the acquisition, VLS has expanded its environmental services capabilities into hazardous waste processing and sequestration to serve the diverse and growing needs of its industrial customers across North America. The transaction closed in December 2022.

VLS Environmental Solutions is a leader in sustainability solutions, with three divisions providing industry-leading services. The company’s Waste Services division provides customized waste processing solutions for hazardous and nonhazardous industrial and commercial waste, including landfill diversion and sustainability programs, solidification of liquid waste, recycling, wastewater treatment, and waste sequestration. The company’s Railcar Cleaning and Repair Services division provides specialty cleaning services for difficult-to-clean products, including chemicals, hardened materials, and pressurized gases, and comprehensive repair services for certified full-service repairs, tank car qualifications, and maintenance. The company’s Marine Services division offers state-of-the-art barge cleaning, repair, and gas-free facilities for various chemical solvents and downstream petroleum products. VLS has more than 1,000 employees in 38 locations across North America.

I Squared Capital is an independent global infrastructure investment manager with more than $36 billion in assets under management, focusing on energy, environmental infrastructure, utilities, digital infrastructure, transport and social infrastructure in North America, Europe, Latin America, and Asia. Headquartered in Miami, the firm has offices in Hong Kong, London, New Delhi, Singapore, and Taipei.

Texas Molecular specializes in the handling, treatment, and sequestration of various liquid hazardous and nonhazardous industrial wastes. The company manages more than 75 million gallons annually under its EPA RCRA and UIC Class 1 Hazardous Waste permits using industry-tested and efficient technology to sequester waste safely and permanently. Texas Molecular has a long track record of operational excellence and safety performance, which VLS is committed to maintaining. The company facilities are strategically located in close proximity to areas containing some of the highest concentration of chemical and petrochemical facilities in the U.S.

Houlihan Lokey served as the exclusive financial advisor to VLS and I Squared Capital. This transaction highlights Houlihan Lokey’s continued success advising clients in the environmental services sector. The firm has successfully advised on 25 announced environmental services transactions since January 2020.