US Ecology, NRCG Merge to Expand Specialty Waste Services
The transaction aims to create a nationwide leader in industrial and hazardous waste management services.
US Ecology Inc. has entered into a definitive merger agreement with NRC Group Holdings Corp. (NRCG), a national leader in environmental, compliance and waste management services to the marine and rail transportation, general industrial and energy industries, in an all-stock transaction with an enterprise value of $966 million.
The transaction, which is expected to close in the fourth quarter of 2019, aims to create one nationwide leader in industrial and hazardous waste management services and is projected to be mid-single-digit accretive to US Ecology’s 2020 adjusted earnings per share, before synergies.
“The addition of NRCG’s substantial service network strengthens and expands US Ecology’s suite of environmental services,” said Jeffrey R. Feeler, president, CEO and chairman of US Ecology, in a statement. “This transaction will establish US Ecology as a leader in standby and emergency response services and adds a new waste vertical in oil and gas exploration and production landfill disposal to further drive waste volumes throughout the Gulf region.”
NRCG is one of two leading national Oil Spill Removal Organizations (OSRO) that provide mandated standby emergency response for the transportation of oil products. With more than 50 service centers, NRCG has a national service network providing emergency and spill response, light industrial services, hazardous and industrial waste management and transportation services. From a growing base of disposal assets in the two key oil basins in the Gulf region, the Permian and the Eagle Ford, NRCG provides landfill disposal of waste from oil and gas drilling, treatment and handling of residual waste streams and rental and transportation services to support its disposal operations.