Clean Harbors Completes Acquisition of Lonestar West Inc.
17 July 2017 - 10:30PM
Business Wire
Transaction Strengthens Daylighting and
Hydro Excavation Service Offerings in U.S. and Canada
Clean Harbors, Inc. (NYSE: CLH) (“Clean Harbors” or the
“Company”) and Lonestar West Inc. (“Lonestar”) (TSX.V: LSI) today
reported the completion of their previously announced transaction
whereby Clean Harbors has acquired Lonestar. The transaction is
valued at approximately CAD $43 million, including an equity payout
of CAD $0.72 per share to Lonestar shareholders and the assumption
of approximately CAD $22 million in outstanding debt, which Clean
Harbors subsequently repaid. As a result of the transaction,
Lonestar’s common shares will be delisted from the TSX Venture
Exchange and Clean Harbors will apply to the relevant securities
commissions for Lonestar to cease to be a reporting issuer under
Canadian securities laws.
“The acquisition of Lonestar will accelerate our growth in the
daylighting and hydro excavation services markets,” said Alan S.
McKim, Clean Harbors Chairman, President and Chief Executive
Officer. “In addition to essentially doubling the size of our hydro
vac fleet, Lonestar’s network of locations will provide us with
direct access to key geographic markets in both the United States
and Canada. Given its attractiveness as a safe and cost-effective
alternative to traditional excavation methods, we believe that the
daylighting marketplace represents an outstanding multi-year growth
opportunity.”
James P. Horvath, Lonestar’s President and Chief Executive
Officer, said, “The combination of Clean Harbors and Lonestar will
create a more formidable competitor. As a single organization, we
will benefit from operational efficiencies and economies of scale,
and increase our capabilities and service offerings for our
combined customer base.”
Lonestar has more than 160 employees and maintains a network of
12 operating centers in key areas throughout Canada and the United
States. The company generated revenues of CAD $43 million in 2016.
Lonestar provides services for drilling operations, oil sands
projects, plant maintenance, as well as commercial, municipal and
civil projects.
About Clean HarborsClean Harbors (NYSE: CLH) is North
America’s leading provider of environmental, energy and industrial
services. The Company serves a diverse customer base, including a
majority of the Fortune 500, across the chemical, energy,
manufacturing and additional markets, 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 throughout the United States, Canada, Mexico
and Puerto Rico. For more information, visit
www.cleanharbors.com.
Safe Harbor StatementAny 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,” “estimates,” “projects,” 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, those items identified as “risk factors” in Clean
Harbors’ most recently filed Form 10-K and Form 10-Q. 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: http://www.businesswire.com/news/home/20170717005545/en/
Clean Harbors, Inc.Investors:Jim
Buckley, 781-792-5100SVP Investor
RelationsBuckley.James@cleanharbors.comorMedia:Eric Kraus, 781-792-5100EVP Corporate
Communications & Public AffairsKraus.Eric@cleanharbors.com
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