Significant price reduction for property with suspected PFAS use

Assisting with due diligence of a former industrial manufacturing facility with environmental contamination by chlorinated compounds and heavy metals and potential for PFAS to have been used and released.
copper electroplating machine for printed circuit boards; Shutterstock ID 1970627783; purchase_order: Nathalie Parry PFAS
Ramboll assisted our client and counsel with due diligence of a former industrial manufacturing facility in southeastern USA in 2021, where contamination of soil and groundwater by chlorinated compounds and heavy metals had been documented. Ramboll also advised that the potential for per- and polyfluoroalkyl substances (PFAS) to have been used and released at the target location should be considered.
Rising to the challenges associated with PFAS in due diligence
There are many factors associated with PFAS as an emerging class of contaminants that can present challenges for stakeholders in due diligence.
Building on years of considering PFAS in mergers, acquisitions, divestitures, and property transactions, Ramboll conducted a detailed and expedited review of the target’s operations, historical information, and local and regional hydrogeologic conditions.
In less than a week, we identified several potential release mechanisms for PFAS and developed reasonable case and reasonable worst case cost estimates that could have resulted in PFAS-related liabilities for our client both at the target location and at off-property locations, while considering applicable current and forecasted state and federal environmental regulations.
Results that matter
Our client remained interested in proceeding with the acquisition after due diligence was completed. Therefore, Ramboll recommended to our client that we engage in negotiations on behalf of our client with the seller’s counsel and consultants, that were focused on accounting for the potential PFAS-related liabilities we had identified. Ramboll led the technical aspects of these negotiations.
Our assistance resulted in a price reduction of approximately $5M for our client and the acquisition was completed
Click here to learn more on Ramboll’s PFAS services

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  • Eric S. Wood

    Eric S. Wood

    Principal

    +1 978-449-0343