Clean Harbors, Inc. announced the acquisition of Terra Nova Solutions, a regional provider of hazardous and non-hazardous waste solutions for $225 million, which the company plans to fund with available cash.
Based in the Carolinas, Terra Nova operates five sites that support high-margin, recurring revenue streams, including wastewater treatment, solidification and waste processing. Clean Harbors expects the business to generate $45 million to $50 million of annual revenue and approximately $15 million of Adjusted EBITDA. An estimated $4 million of synergies are anticipated after the first full year of operation, which would give the acquisition a post-synergy multiple of 11.8 times.
“We continue to prioritize M&A transactions with strong return profiles that enhance our core businesses,” said Mike Battles, Co-Chief Executive Officer. “We believe Terra Nova will be an ideal strategic fit to our waste-handling network. They are a recognized regional leader in waste treatment and processing that brings to us a blue-chip, long-tenured customer base. In addition, Terra Nova has multiple service offerings that align well with our Technical Services and Field Services businesses, including drum collection, wastewater treatment, tank cleaning and vacuum services. We expect the transaction to create incremental cross-selling opportunities.”
Eric Gerstenberg, Co-Chief Executive Officer, said, “For more than 20 years, Terra Nova and its predecessor company have served the Carolinas region with a variety of environmental and waste solutions. Its locations have the annual capacity to treat 35 million gallons of wastewater, along with more than 85 million gallons of solidification capacity. Their 150 specialized trucks and tankers will be a welcome addition to our vehicle fleet. We also believe there are more than 100 customer-focused employees who will benefit from the opportunities for career advancement within our larger organization. We look forward to incorporating those talented folks into the Clean Harbors family.”
