Gray Iron, Ductile, Stainless Steel Foundries. LMG conducted comprehensive pre-acquisition environmental assessments for six foundries recently acquired by a foundry holding company. The foundries included gray iron, ductile, and stainless steel casting operations in New York, Oklahoma, Oregon, and Washington. The environmental assessments included Phase I ESAs, limited Phase II investigations, and environmental compliance audits.

We conducted the environmental assessments under tight timelines and reported the results of the assessments directly to senior management including the Chairman and Chief Financial Officer. Potential environmental risks at five of the six foundry sites were sucessfully evaluated and corrective actions implemented or limitations on liability from the seller obtained. One site consisted of an abandoned operation that was sucessfully divested to local quasi-governmental authority after we conducted additional Phase II investigation and generated targeted environmental liability costs. LMG’s solution resulted in escrowed remediation savings of more than $500,000 that were split 50/50 between seller and buyer.

Metal Parts Machining Plant. LMG conducted a comprehensive evironmental assessment of a medium sized metal parts machining plant. Performed on behalf of a private equity firm, the project involved a Phase I ESA and environmental compliance audit of the existing operations. In addition, we conducted a pre-planned targeted Phase II investigation of the plant based on the preliminary Phase I ESA findings. Based on the results of the compliance audit, LMG worked with the private equity firm to identify corrective actions and operational changes that reduced or eliminated these potential business risks. Furthermore, the results of the target Phase II investigation were used by the firm to negotiate a long-term lease for the real property instead of an outright purchase. LMG completed the entire project within an expedited 3-week timetable allowing the buyer to omplete the industrial plant purchase within the seller’s timetable.