On November 14, 2018, US Ecology announced the acquisition of Ecoserv Industrial Disposal — a wholly owned subsidiary of Ecoserv and a leading provider of non-hazardous industrial wastewater disposal solutions in the Gulf Coast.
The Ecoserv Industrial Disposal facility employs deep-well injection technology and is strategically positioned within reach of key markets such as Houston and Beaumont in Texas and Lake Charles in Louisiana. The facility serves refinery, petrochemical and environmental services customers. Total consideration for the business and related property was $87.2 million, subject to a working capital adjustment, and will be funded from cash on hand and US Ecology’s existing credit facility.
“This acquisition adds unique, high volume industrial liquids disposal capabilities, complements other investments we’ve made in the region, and strengthens our comprehensive environmental services offerings,” commented US Ecology Chair, President and Chief Executive Officer Jeff Feeler. “The facility, permitted for a wide variety of non-hazardous industrial waste including solids, sludges, leachate, and ammonia, offers a lower cost alternative to traditional wastewater treatment.”
The transaction closed on November 14, 2018. It will be reported as part of the Environmental Services segment. The transaction is expected to be accretive to earnings per share. US Ecology expects no significant financial impact to 2018 earnings per share or Adjusted EBITDA for the six weeks of ownership in 2018 and reaffirms its previously issued 2018 earnings guidance that was disclosed in the company’s third quarter earnings release on November 1, 2018. US Ecology expects the acquisition to contribute approximately $9.0 million to $10.0 million of Adjusted EBITDA in 2019.
US Ecology is a North American provider of environmental services to commercial and government entities. The company addresses the complex waste management needs of its customers, offering treatment, disposal and recycling of hazardous, non-hazardous and radioactive waste, as well as a wide range of complementary field and industrial services.
“US Ecology’s focus on safety, environmental compliance and best–in-class customer service enables us to effectively meet the needs of our customers and to build long-lasting relationships,” states the company’s press release. “US Ecology has been protecting the environment since 1952 and has operations in the United States, Canada and Mexico.”