NORWELL, Mass .– (COMMERCIAL THREAD) – Clean Harbors, Inc. (“Clean Harbors”) (NYSE: CLH) today announced the completion of its acquisition of HydroChemPSC (“HPC”), a leading US provider of industrial cleaning, specialty maintenance and utilities. Clean Harbors bought HPC from a subsidiary of Littlejohn & Co., LLC, for $ 1.25 billion in an all-cash transaction. The acquisition was funded through a combination of existing cash and proceeds from Clean Harbors’ new 2021 incremental term financing which closed concurrently with the transaction. The 2021 incremental term loans were issued for a total principal amount of $ 1.0 billion at a rate of Libor +200 basis points and will become due in 2028.
With more than 5,000 employees and 240 service points across the country, HPC serves a wide range of end markets, including refining, chemicals and utilities. For 2021, as a stand-alone company, HPC estimated it would generate revenue of around $ 744 million and Adjusted EBITDA of around $ 115 million. Clean Harbors expects to realize $ 40 million in cost synergies from the acquisition after the first full year of operations, eliminating redundant business expenses and realizing efficiencies in customer service, transport, branch network, asset rental, vehicle and tank refurbishment, subcontracting and supply.
“HPC is an established leader in industrial services, with proprietary technology and a manufacturing center dedicated to making its own tools. The addition of HPC’s experienced team, significant assets and customer base creates significant strategic benefits for Clean Harbors beyond simply expanding the size and scale of our operations, ”said Alan S. McKim, Chairman of the Board, President and CEO of Clean Harbors. “We expect that HPC’s automation and hands-free technology capabilities will drive security improvements and the acquisition will create multiple cross-sell opportunities that will result in additional waste in our network. We welcome HPC’s team of talented employees to Clean Harbors and look forward to a smooth onboarding. We remain convinced that this transaction will significantly increase shareholder value in the years to come and support our growth momentum in 2022 and beyond. ”
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, the majority of which are Fortune 500 companies. Its customer base spans a number of industries, including chemicals, energy and manufacturing, as well as numerous government agencies. These customers rely on Clean Harbors to provide a wide range of services such as end-to-end hazardous waste management, emergency spill response, industrial cleaning and maintenance, and recycling services. Through its subsidiary Safety-Kleen, Clean Harbors is also the largest refiner and recycler of used oil in North America and a leading supplier 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 Declaration
All statements contained in this document that are not historical facts, including information relating to the acquisition of HydroChemPSC, are forward-looking statements within the meaning of Private Securities Litigation Reform Act of 1995. These forward-looking statements are generally identifiable by the use of the words “believes”, “expects”, “intends”, “anticipates”, “plans to”, “research” , “Should”, “estimates”, “plans”, “may”, “likely” or similar expressions. These statements may include, but are not limited to, statements about future financial and operating results, and other statements that are not historical facts. These statements are based on the beliefs and expectations of Clean Harbors management as of that 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 Clean Harbors and the HydroChemPSC transaction and items identified as “risk factors” in the latest Forms 10-K and 10-Q filed by Clean Harbors. Forward-looking statements are neither historical facts nor guarantees of future performance. Therefore, readers are cautioned not to place undue reliance on these forward-looking statements. Clean Harbors does not undertake to revise or publish the results of any revision of these forward-looking statements other than through its filings with the Securities and Exchange Commission, which can be viewed in the “Investors” section of the website. from Clean Harbors at www. .cleanharbors.com.