Transaction to Enhance its Offering to Customers in Southern California and Complement its Nevada Operations
Boise, Idaho – August 4, 2016 – US Ecology, Inc. (NASDAQ-GS: ECOL) (“the Company”) today announced that it has entered into an agreement to acquire the assets of the Vernon, California-based RCRA Part B, liquids and solids waste treatment and storage facility of Evoqua Water Technologies LLC (“Evoqua”). The Vernon facility will expand our market and competitive position in Southern California, leverage our existing fixed facilities and allow us to better service our customers. Terms of the transaction were not disclosed.
The Vernon facility, located approximately five miles southeast of downtown Los Angeles, is focused on the treatment, storage, recycling and offsite shipment of wastewaters, sludges and solids. Current capabilities include neutralization and precipitation of corrosive and metal bearing wastes, carbon adsorption of trace organic wastes, oil water separation, and hazardous waste storage and bulking for offsite shipment.
“The addition of the Vernon facility places us closer to our customers in the Southern California market with new capabilities,” commented Jeff Feeler, US Ecology’s Chairman and CEO. “It will also allow us to leverage our existing sales effort, streamline waste handling for our customers and internalize certain waste streams, while complementing our treatment and disposal assets in Nevada. This high quality permitted facility is strategically located in a key market and will provide opportunities for synergies and enhance growth across our Environmental Services and Field and Industrial Services businesses.”
The transaction is expected to close in the fourth quarter of 2016 and will be reported as part of our Environmental Servicessegment. Itsfinancial contribution to the Company is not expected to have a material impact on US Ecology’s previously provided 2016 earnings guidance which was reaffirmed on July 28, 2016 in conjunction with the Company’s second quarter earnings release.