An effluent processing apparatus comprises a housing having an inlet port and a chamber. A coalescing element is located in the chamber and arranged coaxially with the inlet port. The coalescing element has pleats in a predefined pattern of paths arranged to separate oil and water from an effluent mixture containing air, oil, and water. The effluent mixture flows into the inlet port along an axis of the coalescing element. The effluent mixture is deflected by a portion of the housing to flow perpendicular to the axis along major surfaces of the pleats to separate oil and water from the effluent mixture.