Clean Harbors to acquire Hepaco for $400M in cash

Clean Harbors announced it has entered into a definitive agreement with Gryphon Investors to acquire Hepaco, a provider of specialized environmental and emergency response services in the Eastern United States, for $400M in cash. The acquisition is expected to close in the first half of 2024, subject to regulatory approval and other customary closing conditions. Headquartered in Charlotte, North Carolina, Hepaco has more than 2,000 customers, which it services through more than 40 regional locations in 17 states. Its primary offerings include field services, environmental remediation and emergency response services. On an adjusted basis, Hepaco is expected to generate full-year 2023 EBITDA of approximately $36M on $270M of revenues. Clean Harbors expects the acquisition to generate cost synergies of approximately $20M after the first full year of operations, which equates to a post-synergy acquisition multiple of 7.1 times. Clean Harbors expects to fund the acquisition through available cash and the issuance of some additional debt financing.