Cleanzine: your weekly cleaning and hygiene industry newsletter 25th April 2024 Issue no. 1111
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Clean Harbors to acquire Veolia North America's Industrial Cleaning Services Division
Clean Harbors and Veolia Environmental Services North America, a subsidiary of Veolia North America, announced on Tuesday the signing of a definitive agreement whereby Clean Harbors will acquire Veolia North America's US Industrial Cleaning Services Division for $120 million in an all-cash transaction.
The acquisition is expected to close in the first quarter of 2018, subject to approval by US regulators and other customary closing conditions.
For the 12 months ended 31st December 2017, Veolia North America's Industrial Cleaning Services Division is expected to have revenues of approximately $210 million. Clean Harbors expects the division to generate Adjusted EBITDA of approximately $15 million to $20 million in its first full year of operations.
The Veolia division has a fleet of equipment and vehicles consisting of more than 600 units, including vacuum trucks, roll-off trucks, water blasters and light duty vehicles. These assets complement a Clean Harbors' fleet that today consists of nearly 10,000 pieces of rolling stock. In addition, Veolia is a leader in providing innovative technology in the industrial cleaning market, including Hands Free technologies and other automated equipment that improve employee safety.
Clean Harbors says the transaction will add significant size, scale and capabilities to its existing US Industrial Services business, expand its geographic reach - particularly in the Midwest, maximise cross-selling opportunities with its other lines of business, leverage operating efficiencies to reduce cost and improve customer service, and accelerate growth in an industry that is recovering from the energy downturn.
"We are excited about the potential benefits to our customers, shareholders and industrial services employees from this transaction," said Alan S. McKim, chairman and chief executive officer of Clean Harbors. "The addition of Veolia's US Industrial Cleaning Services Division to our business will enable us to more rapidly grow our presence in the specialty industrial services market.
"Its operational footprint, which complements our North American network, will provide us with greater scale and density in key US regions such as the Gulf Coast and will open new industrial markets within the Midwest. This acquisition also further diversifies our base of blue-chip customers, many of whom have long-standing relationships with Veolia.
"In addition, we expect this acquisition will drive more waste volumes into our disposal network of incinerators, landfills and other waste treatment facilities.
"Like Clean Harbors, Veolia North America makes safety a fundamental part of its corporate culture and consistently delivers industry-leading safety results. It is that commitment to safety, along with an emphasis on delivering quality service, which we expect will create a strong cultural fit between our two organisations."
With more than 60 operating locations across the US, many of which are nested inside customer facilities, Veolia's Industrial Cleaning Services Division provides a broad range of services to an extensive customer base. The Division has approximately 1,400 employees and operates a sizeable service fleet of specialized vehicles and equipment. Services offered include industrial vacuuming, hydro-blasting, tank cleaning, chemical cleaning, total waste management programs, decontamination services and transportation services.
William 'Bill' DiCroce, president and CEO of Veolia North America, says of the transaction: "Clean Harbors is an ideal acquirer for our US Industrial Cleaning Services Division. In divesting this business, we sought a partner that would provide a seamless transition and great continuity for our customers and our employees in that business.
"All of our businesses across North America - water, energy, waste and regeneration - are poised for growth. The proceeds of this sale will help fuel and accelerate that growth."
www.cleanharbors.com / www.veolia.com
25th January 2018