US Ecology, Inc. Announces Purchase of Ecoserv Industrial Disposal, LLC; Further Strengthens Gulf Coast Offerings and Increas...
November 14 2018 - 6:43PM
US Ecology, Inc. (NASDAQ-GS: ECOL) (“the Company”) today announced
the acquisition of Ecoserv Industrial Disposal, LLC, a wholly owned
subsidiary of Ecoserv, LLC, and a leading provider of non-hazardous
industrial wastewater disposal solutions in the Gulf Coast. The
facility employs deep-well injection technology and is
strategically positioned within reach of key markets such as
Houston and Beaumont, Texas and Lake Charles, Louisiana, serving
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 the Company’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 Jeff
Feeler, US Ecology’s Chairman, President and Chief Executive
Officer. “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 and
will be reported as part of the Environmental Services segment.
The transaction is expected to be accretive to earnings per
share. The Company 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. The Company expects the acquisition to
contribute approximately $9.0 million to $10.0 million of Adjusted
EBITDA in 2019.
About US Ecology, Inc.
US Ecology, Inc. is a leading 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. US Ecology has
been protecting the environment since 1952 and has operations in
the United States, Canada and Mexico. For more information, visit
www.usecology.com.
Forward-looking statements are only predictions
and are not guarantees of performance. These statements are based
on management's beliefs and assumptions, which in turn are based on
currently available information. Important assumptions include,
among others, those regarding the expected contribution to the
Company’s earnings of Ecoserv Industrial Disposal, LLC, demand for
Company services, expansion of service offerings geographically or
through new or expanded service lines, the timing and cost of
planned capital expenditures, competitive conditions and general
economic conditions. These assumptions could prove inaccurate.
Forward-looking statements also involve known and unknown risks and
uncertainties, which could cause actual results to differ
materially from those contained in any forward-looking statement.
Many of these factors are beyond our ability to control or predict.
Such factors include the replacement of non-recurring event
clean-up projects, a loss of a major customer, our ability to
permit and contract for timely construction of new or expanded
disposal cells, our ability to renew our operating permits or lease
agreements with regulatory bodies, loss of key personnel,
compliance with and changes to applicable laws, rules, or
regulations, access to insurance, surety bonds and other financial
assurances, a deterioration in our labor relations or labor
disputes, our ability to perform under required contracts, failure
to realize anticipated benefits and operational performance from
acquired operations, adverse economic or market conditions,
government funding or competitive pressures, incidents or adverse
weather conditions that could limit or suspend specific operations,
access to cost effective transportation services, fluctuations in
foreign currency markets, lawsuits, our willingness or ability to
repurchase shares or pay dividends, implementation of new
technologies, limitations on our available cash flow as a result of
our indebtedness and our ability to effectively execute our
acquisition strategy and integrate future acquisitions.
Except as required by applicable law, including
the securities laws of the United States and the rules and
regulations of the Securities and Exchange Commission (the “SEC”),
we are under no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. You should not place undue reliance on
our forward-looking statements. Although we believe that the
expectations reflected in forward-looking statements are
reasonable, we cannot guarantee future results or performance.
Before you invest in our common stock, you should be aware that the
occurrence of the events described in the "Risk Factors" sections
of our annual and quarterly reports could harm our business,
prospects, operating results, and financial condition.
Contact: Alison Ziegler, Darrow Associates (201)
220-2678aziegler@darrowir.com
www.usecology.com
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