Harsco signs agreement to acquire Clean Earth for $625 million
The acquisition of Clean Earth is expected accretive to earnings in 2020. The companies together are expecting synergies to amount to $10 million by 2020.
Harsco Corporation, the industrial services provider recently announced that it has entered into a definitive agreement for the acquisition of Clean Earth, a leading waste management company in the U.S. The deal was closed for cash transaction of $625 million.
For the record, Clean Earth leads the hazardous waste market and is the largest operator in dredged and contaminated material management market. Operating over 27 permitted facilities in the U.S., the company maintains a portfolio of 200 rare and hard to replicate permits, with a cent percent permit renewal success rate. In 2019, it is expected to generate a revenue of approximately $300 million and $65 million of adjusted EBITDA, cites source. In unison with Clean Earth, Harsco plans to expand its portfolio with a wide range of customized environmental solutions and services.
The Chairman and CEO of Harsco, Nick Grasberger reportedly said that the acquisition is expected to benefit Harsco’s customers and shareholders such as higher profit margins, cost savings, recurring revenues, and potential cross-selling opportunities. Crediting Clean Earth, he further added the strong track-record of growth, safety performance, talented employees and management team is a valuable addition for Harsco.
Grasberger also said that Harsco has been working toward a strategic transformation of its portfolio to create more value for shareholders. The addition of ALTEK Group in May 2018 and the recent acquisition of Clean Earth besides the exit of certain businesses are expected to take Harsco closer to its goal of becoming a global environmental solutions market leader.
Reportedly, Harsco’s strategy will gain hold of large-scale capabilities in the contaminated materials, hazardous waste and dredge material markets, which are complementary to its Metals and Mineral environmental solutions and services offerings.
The acquisition of Clean Earth is expected accretive to earnings in 2020. The companies together are expecting synergies to amount to $10 million by 2020.
About Author
Nikita Chaurasia
Having always been daft at wordplay, Nikita Chaurasia, post the completion of post-graduation, commenced her journey into the content generation cosmos. Endowed with a professional MBA degree in Advertising and Public Relations, Nikita strives to integrate her creative side with the technical compet...