spot_img
Tuesday, April 16, 2024

Charlotte’s HEPACO is being sold for $400 million

Charlotte-based HEPACO, which provides environmental cleanup services in 17 states, is being sold to a Massachusetts company for $400 million.

HEPACO, which stands for Hazardous Environmental Products Abatement Company, has more than 2,000 customers, which it services through more than 40 regional locations. Its primary offerings include field services, environmental remediation and emergency response services in the Mid-Atlantic and Southeast.

The buyer, Clean Harbors, is based in Norwell, Massachusetts, and says a majority of Fortune 500 companies are its customers. Its Safety-Kleen subsidiary is North America’s largest re-refiner and recycler of used oil and a leading provider of parts washers and environmental services to commercial, industrial and automotive customer.

“Clean Harbors will provide HEPACO’s customers with far greater resources and access to North America’s largest network of permitted disposal and recycling assets,” said HEPACO Chief Executive Officer Robb Schreck in a release. “This transaction also will offer enhanced career opportunities for HEPACO employees.”

HEPACO has about 1,000 employees and a fleet of about 900 vehicles. It was founded by Ron Horton Sr. in 1984 and is owned by Gryphon Investors, a private equity company based in San Francisco. Gryphon, which has $9 billion in assets under management, initially invested in HEPACO in August 2016. It was previously controlled by the Charlotte-based Carousel Capital private equity firm.

HEPACO is expected to generate full-year 2023 EBITDA of approximately $36 million on $270 million of revenues. Clean Harbors expects the acquisition to generate cost synergies of approximately $20 million after the first full year of operations.

Clean Harbors expects to fund the acquisition through available cash and issuing some additional debt.

The deal is expected to close by the end of June.

Chris Roush
Chris Roush
Chris Roush is executive editor of Business North Carolina. He can be reached at croush@businessnc.com.

Related Articles

TRENDING NOW

Newsletters