Clean Harbors Completes Acquisition of HEPACO
25 March 2024 - 11:30PM
Business Wire
Transaction Broadens Clean Harbors Field
Services and Emergency Response Capabilities While Creating
Significant Margin Improvement and Cross-Selling Opportunities
Clean Harbors, Inc. (“Clean Harbors” or the “Company”) (NYSE:
CLH) today announced the completion of its acquisition of HEPACO, a
leading environmental provider of field and emergency response
services in the Eastern United States. Clean Harbors purchased
HEPACO from Gryphon Investors for $400 million in cash. The
acquisition was financed through proceeds from a recently completed
$500 million expansion of the Company’s Term Loan facility. The
terms of the $500 million expansion remain consistent with the
existing and outstanding facility.
On an adjusted basis, HEPACO generated full-year 2023 EBITDA of
approximately $36 million on $270 million of revenue. Clean Harbors
expects the acquisition to generate cost synergies of approximately
$20 million after the first full year of operations, which equates
to a post-synergy acquisition multiple of 7.1 times. Based on the
completion date of the transaction, Clean Harbors currently expects
that HEPACO will add approximately $30 million of Adjusted EBITDA
in 2024. Clean Harbors’ management plans to update its 2024
guidance when it reports its first-quarter results on May 1.
Eric Gerstenberg, Co-Chief Executive Officer of Clean Harbors,
said, “HEPACO is an ideal cultural fit with our existing Field
Services business, and we are confident that this will be a highly
synergistic deal with strong margin improvement potential. We
expect to achieve our targeted cost synergies in areas such as
subcontracting, branch network, asset rentals, transportation and
procurement. We welcome HEPACO’s talented team to Clean Harbors and
look forward to a smooth integration in the coming months.”
Headquartered in Charlotte, North Carolina, HEPACO has
approximately 1,000 employees and 900 vehicles at 40 regional
locations in 17 states. Its primary offerings to its more than
2,000 customers include field services, environmental remediation
and emergency response services. In addition to regional operations
in those 17 states, HEPACO’s National Operations center provides
24-hour coverage across the continental U.S. through a network of
contractors.
“As an established leader in Field Services, HEPACO will support
the growth of our Environmental Services segment and our Vision
2027 long-term strategic plan,” said Mike Battles, Co-Chief
Executive Officer of Clean Harbors. “The addition of HEPACO’s
highly trained team, specialized equipment, geographic footprint,
and rail and marine service capabilities enables us to tap into
additional markets, as well as cross-sell our full suite of
environmental and industrial services. HEPACO also provides the
opportunity for us to drive additional volumes of waste to our
network of disposal and recycling facilities.”
About Clean Harbors Clean Harbors (NYSE: CLH) is North
America’s leading provider of environmental and industrial
services. The Company serves a diverse customer base, including a
majority of Fortune 500 companies. Its customer base spans a number
of industries, including chemical, manufacturing and refining, as
well as numerous government agencies. These customers rely on Clean
Harbors to deliver a broad range of services such as end-to-end
hazardous waste management, emergency spill response, industrial
cleaning and maintenance, and recycling services. Through its
Safety-Kleen subsidiary, Clean Harbors also is North America’s
largest re-refiner and recycler of used oil and a leading provider
of parts washers and environmental services to commercial,
industrial and automotive customers. Founded in 1980 and based in
Massachusetts, Clean Harbors operates in the United States, Canada,
Mexico, Puerto Rico and India. For more information, visit
www.cleanharbors.com.
Safe Harbor Statement Any statements contained herein
that are not historical facts are forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements are generally identifiable
by use of the words “believes,” “expects,” “intends,”
“anticipates,” “plans to,” “seeks,” “should,” “estimates,”
“projects,” “may,” “likely,” or similar expressions. Such
statements may include, but are not limited to, statements about
future financial and operating results, and other statements that
are not historical facts. Such statements are based upon the
beliefs and expectations of Clean Harbors’ management as of this
date only and are subject to certain risks and uncertainties that
could cause actual results to differ materially, including, without
limitation, risks and uncertainties surrounding the integration of
HEPACO and those items identified as “Risk Factors” in Clean
Harbors’ most recently filed Form 10-K and Form 10-Q.
Forward-looking statements are neither historical facts nor
assurances of future performance. Therefore, readers are cautioned
not to place undue reliance on these forward-looking statements.
Clean Harbors undertakes no obligation to revise or publicly
release the results of any revision to these forward-looking
statements other than through its filings with the Securities and
Exchange Commission, which may be viewed in the “Investors” section
of Clean Harbors’ website at www.cleanharbors.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240325896016/en/
Eric J. Dugas EVP and Chief Financial Officer Clean Harbors,
Inc. 781.792.5100 InvestorRelations@cleanharbors.com
Jim Buckley SVP Investor Relations Clean Harbors, Inc.
781.792.5100 Buckley.James@cleanharbors.com
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