US ECOLOGY, INC. ANNOUNCES PURCHASE OF ECOSERV INDUSTRIAL DISPOSAL, LLC; FURTHER STRENGTHENS GULF COAST OFFERINGS AND INCREASES INDUSTRIAL WASTEWATER DISPOSAL CAPABILITIES
Boise, Idaho – November 14, 2018 – US Ecology, Inc. (NASDAQ-GS: ECOL) (“the Company”) today announced the acquisition of Ecoserv Industrial Disposal, LLC, a wholly owned subsidiary of Ecoserv, LLC, and a leading provider of non-hazardous industrial wastewater disposal solutions in the Gulf Coast. The facility employs deep-well injection technology and is strategically positioned within reach of key markets such as Houston and Beaumont, Texas and Lake Charles, Louisiana, serving refinery, petrochemical, and environmental services customers. Total consideration for the business and related property was $87.2 million, subject to a working capital adjustment, and will be funded from cash on hand and the Company’s existing credit facility.
“This acquisition adds unique, high volume industrial liquids disposal capabilities, complements other investments we’ve made in the region, and strengthens our comprehensive environmental services offerings,” commented Jeff Feeler, US Ecology’s Chairman, President and Chief Executive Officer. “The facility, permitted for a wide variety of non-hazardous industrial waste including solids, sludges, leachate, and ammonia, offers a lower cost alternative to traditional wastewater treatment.”
The transaction closed on November 14, 2018 and will be reported as part of the Environmental Services segment. The transaction is expected to be accretive to earnings per share. The Company expects no significant financial impact to 2018 earnings per share or Adjusted EBITDA for the six weeks of ownership in 2018 and reaffirms its previously issued 2018 earnings guidance that was disclosed in the Company’s third quarter earnings release on November 1, 2018. The Company expects the acquisition to contribute approximately $9.0 million to $10.0 million of Adjusted EBITDA in 2019.