Clean Harbors, Inc. (NYSE: CLH), the leading provider of environmental and industrial services throughout North America, today announced the acquisition of Terra Nova Solutions, a regional provider of hazardous and non-hazardous waste solutions for $225 million, which the Company plans to fund with available cash.
Based in the Carolinas, Terra Nova operates five sites that support high-margin, recurring revenue streams including wastewater treatment, solidification and waste processing.
Clean Harbors expects the business to generate $45 million to $50 million of annual revenue and approximately $15 million of Adjusted EBITDA. An estimated $4 million of synergies are anticipated after the first full year of operation, which would give the acquisition a post-synergy multiple of 11.8 times.
“We continue to prioritize M&A transactions with strong return profiles that enhance our core businesses,” said Mike Battles, Co-Chief Executive Officer.
“We believe Terra Nova will be an ideal strategic fit to our waste-handling network. They are a recognized regional leader in waste treatment and processing that brings to us a blue-chip, long-tenured customer base. In addition, Terra Nova has multiple service offerings that align well with our Technical Services and Field Services businesses, including drum collection, wastewater treatment, tank cleaning and vacuum services.”
CLH shares gained $1.59 to $304.84.
