US ECOLOGY, INC. STRENGTHENS GULF COAST OFFERINGS AND INCREASES EMERGENCY RESPONSE CAPABILITIES WITH ACQUISITION OF ES&H DALLAS
Boise, Idaho – September 4, 2018 – US Ecology, Inc. (NASDAQ-GS: ECOL) (“the Company”) today announced the asset purchase of ES&H of Dallas, L.L.C. (“ES&H Dallas”), which provides emergency and spill response, light industrial services and transportation and logistics for waste disposal and recycling from locations in Dallas and Midland, Texas. The acquisition will provide deeper penetration into the emergency and spill response marketplace and extend the reach of the Company’s core waste disposal and recycling business in the Gulf region. Total consideration for the business and related property was $22.0 million.
“The addition of ES&H Dallas’ premier service and logistics network will support our growing business in the Gulf region,” commented Jeff Feeler, US Ecology’s Chairman, President and Chief Executive Officer. “Texas remains one of the fastest growing economies in the U.S. driven primarily by the energy markets as well as the long list of new manufacturing facilities coming online. This acquisition will expand our in-house service capabilities, complement our organically developed Houston 10-day facility and will add key customers in the region. With this purchase, we see the opportunity to combine our existing suite of field services with ES&H Dallas’ emergency and spill response offerings, leveraging that business model across our network of facilities in the Gulf and driving value for our customers. We also gain a highly effective management team with deep experience and relationships in the region.”
The transaction closed on August 31, 2018 and will be reported as part of the Company’s Field and Industrial Services segment. Its financial contribution is not expected to have a material impact on 2018 earnings guidance, which was reaffirmed on August 2, 2018 in conjunction with the Company’s second quarter earnings release. The Company estimates that the acquisition will contribute approximately $20 million of revenue and $4.0 million of EBITDA in 2019.