MES Sheds 'Forever Chemical' Liabilities in Strategic Divestiture

MIAMI, FL – January 09, 2026 – In a decisive move to insulate itself from one of the most complex and costly environmental challenges facing corporations today, MES Intermediate, Inc. has permanently divested subsidiaries holding alleged liabilities related to PFAS, the so-called "forever chemicals." The trusted supplier of safety equipment for first responders announced it has transferred these legacy claims to Mustang ES Holdings, LLC, an entity specializing in managing such long-tail risks.

The transaction, which closed on January 2, 2026, effectively scrubs MES's balance sheet of the financial uncertainty tied to per- and polyfluoroalkyl substances. These man-made chemicals, found in products ranging from non-stick pans to firefighting foam, are at the center of a burgeoning public health and legal crisis due to their persistence in the environment and links to serious health conditions.

"Addressing alleged PFAS matters in a thoughtful and definitive manner is a critical step forward for our organization," said Marvin Riley, CEO of the company's operating businesses, in a statement. "This transaction enables the Company to remain focused on our mission of protecting those who work in environments that pose an immediate danger to life or health, while ensuring these legacy matters are managed by a dedicated and experienced counterparty."

The New Playbook for Environmental Risks

MES's divestiture is not happening in a vacuum. It represents a strategic maneuver that is becoming an increasingly common part of the corporate playbook for handling overwhelming environmental liabilities. The legal and regulatory landscape surrounding PFAS has intensified dramatically, creating a high-stakes environment for any company with historical ties to the chemicals.

In April 2024, the U.S. Environmental Protection Agency (EPA) took two landmark steps: designating PFOA and PFOS—two of the most notorious PFAS compounds—as hazardous substances under the Superfund law, and establishing the first-ever national, legally enforceable limits for six PFAS in drinking water. These federal actions have armed regulators and plaintiffs with powerful new tools, accelerating the pace of litigation and raising the potential cost of remediation and legal settlements to astronomical levels.

Major corporations have already felt the financial sting. 3M, a primary manufacturer of PFAS, agreed to a settlement of up to $12.5 billion in 2023 to resolve claims from public water systems. DuPont and its spinoffs have faced similar multi-billion-dollar liabilities. For smaller companies, the risk can be existential; Kidde-Fenwal Inc., a manufacturer of fire suppression systems, filed for Chapter 11 bankruptcy in 2023, citing the crushing weight of thousands of lawsuits related to its use of PFAS-containing aqueous film-forming foam (AFFF).

Faced with this tidal wave of liability, companies are increasingly turning to third-party liability management firms. These specialized entities, like Mustang ES Holdings, are built to acquire and manage legacy corporate risks, including the associated insurance assets. By transferring the liabilities, the original company can achieve financial certainty and redirect management attention away from decades-old problems. This strategy allows for the complex, long-term administration of claims and insurance recovery to be handled by experts, while the operating business moves forward unencumbered.

A Clean Break for a Focused Future

The structure of the MES transaction underscores a desire for a clean and permanent separation. The company divested specific non-operating subsidiaries, including Municipal Emergency Services, LLC, which held the product liability claims. According to the announcement, Mustang ES Holdings has now assumed full responsibility for the management and resolution of these alleged PFAS matters.

Critically for MES, its partners, and its customers, the company emphasized that the deal "does not materially impact ongoing operations, employees, customers, vendors, or commercial relationships." This surgical approach is designed to isolate the legacy problem without disrupting the healthy, forward-looking core business. By walling off the PFAS liabilities, MES not only de-risks its financial future but also protects its brand from the reputational damage that often accompanies protracted environmental litigation.

The involvement of respected advisors—Ducera Partners for MES and Latham & Watkins as legal counsel—signals a sophisticated and carefully planned transaction. Such deals are complex, requiring intricate financial modeling and legal structuring to ensure the liability transfer is robust and withstands potential challenges, while providing the acquiring entity with the resources, primarily insurance assets, to manage the claims effectively over time.

Doubling Down on Protecting the Protectors

Beyond the financial engineering, the divestiture is a strategic declaration of intent. Since its founding in 2001, MES has built its identity on a single, critical mission: equipping and protecting firefighters, law enforcement officers, industrial safety crews, and other first responders. The company provides everything from advanced protective gear and breathing apparatus to life safety systems and maintenance services.

Shedding the distraction of legacy liabilities allows MES to rededicate its capital and intellectual resources entirely to this mission. The global market for emergency and safety equipment is growing rapidly, driven by stricter safety regulations and an increasing frequency of natural disasters and complex emergencies. Innovation in this sector is relentless, with advancements in smart technology, materials science, and data analytics constantly raising the bar for responder safety.

With a cleaner balance sheet and renewed focus, MES is better positioned to invest in the next generation of safety solutions. This could include developing or sourcing lighter, more durable personal protective equipment (PPE) with integrated biometric sensors to monitor a firefighter's vital signs in real-time. It could mean expanding its offerings in drone technology for scene surveillance or advanced communication systems that work in the most challenging environments. By removing the shadow of "forever chemicals," MES can more aggressively pursue growth, whether through organic R&D, strategic acquisitions, or expanding its national network of service centers and sales professionals, ensuring that those who run toward danger are as protected as possible.