Clean Harbors, Inc. has completed the purchase of HEPACO, an Eastern U.S.-based provider of field and emergency response services. Norwell, Mass.-based Clean Harbors finalized the transaction for $400 million in cash as part of an agreement with Gryphon Investors - HEPACO's owners.

Waste360 Staff, Staff

March 26, 2024

2 Min Read
pichetw / Alamy Stock Photo

Clean Harbors, Inc. has completed the purchase of HEPACO, an Eastern U.S.-based provider of field and emergency response services.

Norwell, Mass.-based Clean Harbors finalized the transaction for $400 million in cash as part of an agreement with Gryphon Investors - HEPACO's owners.

Eric Gerstenberg, Co-CEO of Clean Harbors, commented that HEPACO is an "ideal" piece to the Clean Harbors Field Services portfolio, opening up avenues for strong margin improvement.

"We expect to achieve our targeted cost synergies in areas such as subcontracting, branch network, asset rentals, transportation and procurement," Gerstenberg said. "We welcome HEPACO’s talented team to Clean Harbors and look forward to a smooth integration in the coming months.”

HEPACO's full-year 2023 EBITDA reached nearly $36 million on $270 million of revenue.

Cost synergies are expected to be $20 million after the first full year of operations and approximately $30 million of adjusted EBITDA in 2024. Clean Harbors’ management plans to update its 2024 guidance when it reports its first-quarter results on May 1.

Headquartered in Charlotte, North Carolina, HEPACO has approximately 1,000 employees and 900 vehicles at 40 regional locations in 17 states.

Its primary offerings to its more than 2,000 customers include field services, environmental remediation and emergency response services. In addition to regional operations in those 17 states, HEPACO’s National Operations center provides 24-hour coverage across the continental U.S. through a network of contractors.

“As an established leader in Field Services, HEPACO will support the growth of our Environmental Services segment and our Vision 2027 long-term strategic plan,” said Mike Battles, Co-CEO of Clean Harbors. “The addition of HEPACO’s highly trained team, specialized equipment, geographic footprint, and rail and marine service capabilities enables us to tap into additional markets, as well as cross-sell our full suite of environmental and industrial services. HEPACO also provides the opportunity for us to drive additional volumes of waste to our network of disposal and recycling facilities.”

Source: Clean Harbors

About the Author(s)

Stay in the Know - Subscribe to Our Newsletters
Join a network of more than 90,000 waste and recycling industry professionals. Get the latest news and insights straight to your inbox. Free.

You May Also Like