Clean Harbors Announces Acquisition of Evergreen Oil
Clean Harbors Announces Acquisition of Evergreen Oil
Company Acquires One of California's Largest Waste Oil Collectors and Environmental Services Operator with Only Re-refinery in the State
NORWELL, Mass.--(BUSINESS WIRE)-- Clean Harbors, Inc. ("Clean Harbors") (NYS: CLH) , the leading provider of environmental, energy and industrial services throughout North America,today announced that it has acquired Evergreen Oil, Inc. out of bankruptcy through the U.S. Bankruptcy Court for the Central District of California. Evergreen Oil is a California-based environmental services company that is one of the state's largest collectors of waste oil and runs the only re-refinery in the state. Clean Harbors is funding the $60 million transaction through available cash on its balance sheet.
The acquisition of Evergreen Oil is beneficial to Clean Harbors on a number of fronts:
- expands Clean Harbors' geographic footprint in re-refining to include coverage in the Western U.S. - complementing its Indiana facility in the Midwest and Breslau facility in Eastern Canada;
- provides Clean Harbors with the second-largest collector of waste oil in California; and
- provides Clean Harbors with a number of valuable ancillary waste assets, including a permitted Treatment, Storage and Disposal Facility (TSDF).
"Our acquisition of Evergreen aligns well with our Safety-Kleen re-refinery and environmental businesses, and creates multiple opportunities for profitable growth," said Alan S. McKim, Chairman and Chief Executive Officer. "California is an attractive market for us, and Evergreen has a strong presence in the state. Given the financial incentives available in California and that used oil is designated as hazardous, the addition of Evergreen will contribute to Safety-Kleen's ongoing initiative to lower its pay-for-oil (PFO) costs."
"We believe that we are purchasing this asset at a favorable price for our shareholders," McKim said. "While we plan to invest some capital into the re-refinery to enhance its layout and productivity, the plant is relatively new, with major portions of it having been rebuilt following a fire at the facility in 2011. In addition to the re-refinery, the purchase includes rolling stock and equipment, a diverse roster of West Coast customer accounts, an ancillary hazardous waste business and a TSDF in Carson, California - a state where stringent permitting requirements create barriers to entry."
"We are excited about the overall potential for the Evergreen assets. Given our acquisition expertise and track record, we are confident that our integration teams can realize substantial upside potential from our combined company. We look forward to welcoming Evergreen's employees into the Clean Harbors and Safety-Kleen family," McKim concluded.
About Clean Harbors
Clean Harbors (NYS: CLH) is the leading provider of environmental, energy and industrial services throughout North America. The Company serves a diverse customer base, including a majority of the Fortune 500 companies, thousands of smaller private entities and numerous federal, state, provincial and local governmental agencies. Through its Safety-Kleen subsidiary, Clean Harbors also is a premier provider of used oil recycling and re-refining, parts washers and environmental services for the small quantity generator market.
Headquartered in Massachusetts, Clean Harbors has waste disposal facilities and service locations throughout the United States and Canada, as well as Mexico and Puerto Rico. For more information, visit www.cleanharbors.com.
Safe Harbor Statement
Any statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are generally identifiable by use of the words "believes," "expects," "intends," "anticipates," "plans to," "estimates," "projects," or similar expressions. Such statements may include, but are not limited to, statements about the benefits of the acquisition of Evergreen and other statements that are not historical facts. Such statements are based upon the beliefs and expectations of Clean Harbors' management as of this date only and are subject to certain risks and uncertainties that could cause actual results to differ materially, including, without limitation, those items identified as "risk factors" in Clean Harbors' most recently filed Form 10-K and Form 10-Q. Therefore, readers are cautioned not to place undue reliance on these forward-looking statements. Clean Harbors undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements other than through its filings with the Securities and Exchange Commission, which may be viewed in the "Investors" section of Clean Harbors' website at www.cleanharbors.com.
Clean Harbors, Inc.
James M. Rutledge, 781-792-5100
Vice Chairman, President and CFO
Jim Buckley, 781-792-5100
SVP Investor Relations and Corporate Communications
KEYWORDS: United States North America California Massachusetts
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