Clean Harbors completes $775 million acquisition of EnviroServe and ES&H

Clean Harbors, Inc. (NYSE: CLH) has completed the acquisition of EnviroServe and ES&H for a combined purchase price of $775 million. The transactions were funded using available cash and a recently completed $600 million senior notes offering.

The company stated that EnviroServe and ES&H are expected to generate approximately $340 million in annual revenues. On a post-synergy basis, the combined entities are projected to produce approximately $87 million in annual Adjusted EBITDA, resulting in an acquisition multiple of 8.9 times Adjusted EBITDA.

Eric Gerstenberg, Co-Chief Executive Officer of Clean Harbors, noted that the acquisitions enhance the company's Technical Services and Field Services businesses. He highlighted that EnviroServe's network of 10-day transfer facilities expands collection capabilities, while its emergency response assets and rail cleaning facilities amplify current Field Services offerings. Gerstenberg also pointed to ES&H's position as a leader in the Gulf region, noting its on-water emergency response expertise and the U.S. Coast Guard's highest Oil Spill Response Organization (OSRO) classification.

Mike Battles, the other Co-Chief Executive Officer, said the company expects to generate substantial shareholder value from the deals, citing their post-synergy multiples and cross-selling potential. Battles emphasized that EnviroServe provides an opportunity to drive volumes into Clean Harbors' disposal and recycling network, while ES&H adds a high-margin response business, including its Forefront emergency readiness and training offering.

Headquartered in Sandy, Utah, EnviroServe serves nearly 2,500 customers through 40 locations. The company holds permits in 48 states, including 18 10-day transfer facilities, solidification facilities, and railcar cleaning locations. Its services include remediation, rail services, industrial cleaning, emergency response, and hazardous and non-hazardous waste transportation and processing.

ES&H, headquartered in Louisiana, operates 13 service branches primarily in coastal markets. The company provides maritime capabilities that complement Clean Harbors' existing offerings, with core services including emergency response, field services, and environmental management for customers across multiple industries.

Clean Harbors describes itself as North America's leading provider of environmental and industrial services. Founded in 1980 and based in Massachusetts, the company operates in the United States, Canada, Mexico, Puerto Rico, and India. Its customer base includes a majority of Fortune 500 companies and spans industries such as chemical, manufacturing, refining, and government agencies. Through its Safety-Kleen subsidiary, Clean Harbors provides parts washers and environmental services to commercial, industrial, and automotive customers.