General Dynamics Ordinance and Tactical Systems divests EBV Munitions Services subsidiary

Houlihan Lokey announced General Dynamics Ordinance and Tactical Systems Inc. (GD-OTS), a subsidiary of General Dynamics Corp., has divested EBV, its Munitions Services subsidiary, to Heritage Environmental Services, a portfolio company of EQT Infrastructure (EQT), for undisclosed terms.

EBV is a leading provider of energetic waste disposal in North America with a comprehensive set of commercial, government, and industrial waste disposal assets. EBV provides complete demilitarization and energetics waste disposal services, including characterization, analysis, and transportation for on-site storage, treatment, disposal, and recycling where possible. EBV is located outside of Joplin, Missouri, and its 55-acre facility includes one rotary kiln incinerator, one car bottom furnace, 11 thermal treatment units, and several automated demilitarization lines. Since 1988, EBV has evolved into the leading provider of energetics waste disposal and demilitarization services while maintaining a culture of safety and superior customer service.

GD is a global aerospace and defense company that offers a broad portfolio of products and services in business aviation, ship construction and repair, land combat vehicles, weapons systems, and munitions, and technology products and services. GD employs more than 100,000 people across 65 countries worldwide and generated $42.3 billion in revenue in 2023.

GD-OTS is a global leader in the design, engineering, and production of munitions, energetics, weapons, armaments, and missile subsystems around the world. GD-OTS empowers the U.S. military and its allies with an extensive range of overarching product segments applied across all levels of strategic and tactical operations, providing a cutting-edge advantage to its warfighters.

Heritage is a privately held waste management and sustainability services company in the business of managing and eliminating industrial, commercial, and other waste materials, making a difference for its clients since its founding in 1970. Heritage takes pride in solving complex problems by offering a wide array of tailored solutions, from responsible waste management and disposal, on-site support, and technical solutions to emergency response and sustainability services. Each of the firm’s 1,600+ employees plays an integral role in the process, and its technology continues to be on the cutting edge of this critical industry.

The transaction closed on September 27, 2024.

EQT is a purpose-driven global investment organization with Eur246 billion in total assets under management (Eur133 billion in fee-generating assets under management), within two business segments: Private Capital and Real Assets. EQT owns portfolio companies and assets in Europe, Asia-Pacific, and the Americas and supports them in achieving sustainable growth, operational excellence, and market leadership.

Houlihan Lokey served as the exclusive financial advisor to GD and assisted in structuring the transaction process as well as marketing and negotiating the transaction. This transaction highlights Houlihan Lokey’s preeminent position and continued success advising clients in the environmental services sector, having successfully advised on more than 25 closed transactions since the beginning of 2023.