Clean Harbors acquiring HEPACO for USD400 million

Clean Harbors announced that it will acquire HEPACO, a leading provider of specialized environmental and emergency response services in the Eastern United States, from Gryphon Investors for USD400 million in cash. The deal expands Clean Harbors’ capabilities in environmental remediation and emergency response.

The transaction is expected to close in the first half of 2024 pending approvals.

HEPACO serves more than 2,000 customers from 40+ locations across 17 U.S. states. The addition strengthens Clean Harbors’ field services and its ability to respond rapidly to incidents.

“Scale and quick response are critical for emergency services,” said Clean Harbors Co-CEO Eric Gerstenberg. “HEPACO’s footprint, people and equipment will enhance our business.”

HEPACO CEO Robb Schreck said joining Clean Harbors provides greater resources for customers and career opportunities for employees. The deal expands Clean Harbors’ rail, marine, and hazardous waste capabilities as well.

Founded in 1980, Clean Harbors is a leading provider of environmental and industrial services in North America. Through numerous brands, it serves chemical, manufacturing and energy companies with waste disposal, emergency response, industrial cleaning, environmental remediation and more.

On USD270 million of revenue, HEPACO should generate around USD36 million of 2023 EBITDA. Including USD20 million of expected cost savings, the deal equals a 7.1X multiple.