November 23, 2015
EnergySolutions Inc. has agreed to purchase hazardous waste firm Waste Control Specialists LLC (WCS) for $270 million in cash and other stock and debt considerations.
Salt Lake City-based Energy Solutions, primarily a nuclear waste management firm, acquired WCS, which operates a waste disposal facility in Andrews County, Texas. The facility processes, treats, stores and disposes a broad range of low-level radioactive and hazardous wastes, according to a news release.
In addition to paying $270 million in cash, EnergySolutions paid $20 million face amount in Series A Preferred Stock and will assume about $77 million of WCS debt. Additionally, EnergySolutions will assume all financial assurance obligations related to the WCS business.
Waste Control Specialists is a wholly owned subsidiary of Dallas-based Valhi Inc. Energy Solutions is a subsidiary of Rockwell Holdco Inc.
EnergySolutions and WCS will continue to operate as independent companies until the completion of the sale.
"Combining our capabilities will bring improved operational efficiencies and allow us to deliver a safe and seamless supply chain that better serves the needs of commercial and government customers," said David Lockwood, EnergySolutions president and CEO. "In addition to the ongoing utilization of all the acquired assets, we intend to continue to seek expansion opportunities in the nuclear services area.”
Valhi said in its news release that proceeds from the sale would be used for general corporate purposes. It expects the deal to close in the first half of 2016.
Steven Watson, Valhi chairman and CEO, said the sale “will expand the range of services available to its customers, while providing Valhi the opportunity to deploy the cash proceeds from the sale to take advantage of growth opportunities in its remaining businesses.”
Other recent hazardous waste-related acquisitions include ProMed Waste Solutions LLC buying two medical waste transport companies. ProMed, a St. Petersburg, Fla.-based medical waste firm, acquired BioTram Inc. of Largo, Fla., and Bio-Man LLC of Naples, Fla.
The moves fit with the St. Petersburg, Fla.-based company’s strategy to increase service route density. It also allows the firm to more efficiently leverage key customer and sales synergies.
In August Action Resources, a hazardous and solid waste and environmental services firm, purchased Stella Environmental Services, a Houston-based firm that specializes in municipal solid waste processing.
Action, based in Birmingham, Ala., also bought Triad Transport, which hauls hazardous waste and other materials. The company is based in McAlester, Okla.