According to Environmental Laboratory Washington Report’s yearly survey, most companies in the environmental testing business reported slightly higher earnings in 2006. However, general expectations for industry growth are not high: most respondents to the survey believe that the market, which generates an estimated $1.7 billion in annual revenues, will be flat in coming years. In 2006, Severn Trent Laboratories was purchased by the private equity firm that owns TestAmerica (see IBO 9/30/06). This deal creates a company with $355 million in revenues; its nearest competitor on the top 20 list for the industry, Pace Analytical Services, has annual revenues of $63 million. The other companies in the top quarter of the list are Accutest Laboratories, EMSL Analytical and Columbia Analytical Services, with $50.5 million, $42 million and $35.9 million in annual revenues, respectively.

Source: Environmental Laboratory Washington Report