NORWELL, Mass. - Clean Harbors, Inc. (NYSE: NYSE:CLH), a North American leader in environmental and industrial services, has finalized its purchase of HEPACO, a provider of environmental and emergency response services based in the Eastern United States. The $400 million cash transaction was funded through an expansion of Clean Harbors' term loan facility.
HEPACO, with its headquarters in Charlotte, North Carolina, brings to Clean Harbors a workforce of approximately 1,000, a fleet of 900 vehicles, and a presence in 17 states through 40 regional locations. This acquisition is expected to bolster Clean Harbors' field services and emergency response capabilities.
HEPACO's 2023 revenue of $270 million and adjusted EBITDA of about $36 million are projected to contribute approximately $30 million of adjusted EBITDA to Clean Harbors in 2024.
The company anticipates realizing cost synergies of around $20 million after the first year of combined operations, resulting from efficiencies in subcontracting, branch network, asset rentals, transportation, and procurement. Clean Harbors' management is set to update its 2024 guidance on May 1, following its first-quarter results.
Eric Gerstenberg, Co-Chief Executive Officer of Clean Harbors, expressed confidence in the cultural fit and synergy potential of the acquisition. Mike Battles, another Co-CEO, highlighted the strategic alignment with the company's long-term Vision 2027 plan, noting the additional markets and cross-selling opportunities the merger will create.
The information is based on a press release statement from Clean Harbors. The statement also includes forward-looking sentiments that are subject to risks and uncertainties, and the company has no obligation to update any forward-looking statements outside of its filings with the Securities and Exchange Commission.
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