Environmental services specialist Clean Harbors (NYSE: CLH ) announced today that it has acquired out of bankruptcy waste oil collector and re-refinery Evergreen Oil. The deal is valued at $60 million.
Evergreen is based out of California and is the state's only re-refinery, or a company that recycles used motor oil into clean, pure motor oil and products. Clean Harbors has its own re-refinery operations in Indiana through its Safety-Kleen business, and the acquisition expands its geographic footprint out west.
Viewing the acquisition as a complementary one to its own existing lines, Clean Harbors Chairman and CEO Alan S. McKim said: "California is an attractive market for us, and Evergreen has a strong presence in the state. Given the financial incentives available in California and that used oil is designated as hazardous, the addition of Evergreen will contribute to Safety-Kleen's ongoing initiative to lower its pay-for-oil costs."
McKim went on to note that the company plans to invest money into the new business and that considering Clean Harbors' track record with acquisitions, he is "confident that our integration teams can realize substantial upside potential from our combined company."
In addition to the re-refinery, the purchase includes rolling stock and equipment, a diverse number of customer accounts, an ancillary hazardous waste business, and a treatment, storage, and disposal facility in Carson, Calif.
Headquartered in Massachusetts, Clean Harbors has waste disposal facilities and service locations throughout the United States and Canada, as well as Mexico and Puerto Rico.