US Ecology, Inc. Strengthens Gulf Coast Offerings and Increases Emergency Response Capabilities with Acquisition of ES&H Dallas
BOISE, Idaho, Sept. 04, 2018 (GLOBE NEWSWIRE) -- 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.
About US Ecology, Inc.
US Ecology, Inc. is a leading North American provider of environmental services to commercial and government entities. The Company addresses the complex waste management needs of its customers, offering treatment, disposal and recycling of hazardous, non-hazardous and radioactive waste, as well as a wide range of complementary field and industrial services. US Ecology’s focus on safety, environmental compliance, and best–in-class customer service enables us to effectively meet the needs of our customers and to build long-lasting relationships. US Ecology has been protecting the environment since 1952 and has operations in the United States, Canada and Mexico. For more information, visit www.usecology.com.
Forward-looking statements are only predictions and are not guarantees of performance. These statements are based on management’s beliefs and assumptions, which in turn are based on currently available information. Important assumptions include, among others, those regarding demand for Company services, expansion of service offerings geographically or through new or expanded service lines, the timing and cost of planned capital expenditures, competitive conditions and general economic conditions. These assumptions could prove inaccurate. Forward-looking statements also involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. Many of these factors are beyond our ability to control or predict. Such factors include the replacement of non-recurring event clean-up projects, a loss of a major customer, our ability to permit and contract for timely construction of new or expanded disposal cells, our ability to renew our operating permits or lease agreements with regulatory bodies, loss of key personnel, compliance with and changes to applicable laws, rules, or regulations, access to insurance, surety bonds and other financial assurances, a deterioration in our labor relations or labor disputes, our ability to perform under required contracts, failure to realize anticipated benefits and operational performance from acquired operations, adverse economic or market conditions, government funding or competitive pressures, incidents or adverse weather conditions that could limit or suspend specific operations, access to cost effective transportation services, fluctuations in foreign currency markets, lawsuits, our willingness or ability to repurchase shares or pay dividends, implementation of new technologies, limitations on our available cash flow as a result of our indebtedness and our ability to effectively execute our acquisition strategy (including realizing anticipated synergies) and integrate future acquisitions.
Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the Securities and Exchange Commission (the “SEC”), we are under no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on our forward-looking statements. Although we believe that the expectations reflected in forward-looking statements are reasonable, we cannot guarantee future results or performance. Before you invest in our common stock, you should be aware that the occurrence of the events described in the “Risk Factors” sections of our annual and quarterly reports could harm our business, prospects, operating results, and financial condition.
Contact: Alison Ziegler, Darrow Associates (201) 220-2678 firstname.lastname@example.org www.usecology.com