Harsco Buys ESOL
Harsco buys ESOL.
Harsco buys ESOL from Stericycle for $462.5 million.
ESOL will be joined with Harsco’s Clean Earth business in beneficial reuse solutions for hazardous wastes and contaminated soils. Stericycle will continue to provide unused pharma take-back and hazardous waste services to healthcare customers. Harsco will deliver transport and disposal to Stericycle’s customers under a long-term services agreement.
ESOL offers a broad range of disposal solutions across industrial, retail, and healthcare. With a network of 13 federally permitted treatment, storage, and disposal facilities, it collects, receives, and processes 500,000 tons of hazardous waste a year. It also provides transport services via its logistics network and runs a fleet of 700 vehicles serving 90,000 customer locations with 450,000 service stops each year.
With the addition of ESOL, Harsco will enjoy greater service offerings across the industrial waste value chain and added synergy with Harsco Environmental and Clean Earth. ESOL’s focus on hazardous waste treatment and disposal and its robust transport fleet complement Clean Earth’s established presence in hazardous waste and contaminated soils. Through Clean Earth, Harsco benefits from a leadership team with prior experience and tenure at ESOL.
The joint firm will run 19 TSDFs, making it a top network of federally permitted waste management sites. ESOL has 61 locations with 13 TSDFs and 48 ten-day facilities concentrated in the Midwestern and Western states. It’s a natural complement to Clean Earth’s existing coverage across 16 states in the Northeast. With larger disposal capacity across an expanded nationwide network, the joint business scales nicely.
Harsco will enrich ESOL’s relationships, grow its presence in new and existing industries, and drive added service and revenue prospects. ESOL brings new customer rapport in industrial and retail, and exposure to healthcare. In industrial, it serves 7,800 customers in government, municipal, education, energy, and infrastructure. In retail, it serves 150 superstores, home centers, pharmacies, groceries, and e-commerce platforms. In healthcare, it serves 25,000 hospitals, physicians’ offices, and dental practices, with a focus on hazardous waste collection, transfer, and disposal.
Nick Grasberger of Harsco said: ‘The addition of ESOL to the Clean Earth hazardous waste platform is a unique opportunity to bring together two highly complementary, market-leading, waste management portfolios. The leadership team at Clean Earth is familiar with the ESOL business, and we see a significant opportunity to optimize these joint businesses and unlock the added value creation potential of the ESOL assets. We look forward to welcoming the ESOL team to Harsco and realizing the benefits of this highly strategic and accretive transaction.
We are encouraged by Clean Earth’s strong performance to date and believe that our stakeholders will benefit from a more diverse business that has the scale, market presence, and customer relationships to compete and win in the fragmented hazardous waste services industry. Since outlining our new corporate strategy less than 12 months ago, we have announced five transactions that position the Company as a high-growth, single-thesis environmental solutions business. As we look ahead, we continue to believe that shifting our portfolio to less-cyclical businesses with attractive growth potential is the best way to create sustainable, long-term value for Harsco and our shareholders.’
Cindy Miller of Stericycle said: ‘The sale of the Domestic Environmental Solutions business demonstrates important progress in our transformation as we improve margin percentages, reduce debt, enhance our balance sheet flexibility, and drive long-term shareholder value. As a focused provider of environmental solutions in the US, Harsco is well-positioned to drive this business forward, and we are confident this transaction is in the best interest of Stericycle and our shareholders, our customers, and team members. We thank our team members and customers for their continued support, and we look forward to working with Harsco to ensure a smooth transition.
Beyond our portfolio rationalization efforts, our team is focused on driving revenue quality and improving operational efficiencies across our business as well as the implementation of our global ERP system. As we continue to make progress on these initiatives, we stay committed to deepening our value proposition for clients with differentiated services and enhancing value for Stericycle shareholders.’
Goldman Sachs served as financial advisor to Harsco. Fried, Frank, Harris, Shriver & Jacobson, and Simpson Thacher & Bartlett served as legal advisors.
Stifel and Bank of America Securities served as financial advisors to Stericycle. Latham & Watkins served as legal advisor.
Harsco buys ESOL from Stericycle for $462.5 million.
ESOL will be joined with Harsco’s Clean Earth business in beneficial reuse solutions for hazardous wastes and contaminated soils. Stericycle will continue to provide unused pharma take-back and hazardous waste services to healthcare customers. Harsco will deliver transport and disposal to Stericycle’s customers under a long-term services agreement.
ESOL offers a broad range of disposal solutions across industrial, retail, and healthcare. With a network of 13 federally permitted treatment, storage, and disposal facilities, it collects, receives, and processes 500,000 tons of hazardous waste a year. It also provides transport services via its logistics network and runs a fleet of 700 vehicles serving 90,000 customer locations with 450,000 service stops each year.
With the addition of ESOL, Harsco will enjoy greater service offerings across the industrial waste value chain and added synergy with Harsco Environmental and Clean Earth. ESOL’s focus on hazardous waste treatment and disposal and its robust transport fleet complement Clean Earth’s established presence in hazardous waste and contaminated soils. Through Clean Earth, Harsco benefits from a leadership team with prior experience and tenure at ESOL.
The joint firm will run 19 TSDFs, making it a top network of federally permitted waste management sites. ESOL has 61 locations with 13 TSDFs and 48 ten-day facilities concentrated in the Midwestern and Western states. It’s a natural complement to Clean Earth’s existing coverage across 16 states in the Northeast. With larger disposal capacity across an expanded nationwide network, the joint business scales nicely.
Harsco will enrich ESOL’s relationships, grow its presence in new and existing industries, and drive added service and revenue prospects. ESOL brings new customer rapport in industrial and retail, and exposure to healthcare. In industrial, it serves 7,800 customers in government, municipal, education, energy, and infrastructure. In retail, it serves 150 superstores, home centers, pharmacies, groceries, and e-commerce platforms. In healthcare, it serves 25,000 hospitals, physicians’ offices, and dental practices, with a focus on hazardous waste collection, transfer, and disposal.
Nick Grasberger of Harsco said: ‘The addition of ESOL to the Clean Earth hazardous waste platform is a unique opportunity to bring together two highly complementary, market-leading, waste management portfolios. The leadership team at Clean Earth is familiar with the ESOL business, and we see a significant opportunity to optimize these joint businesses and unlock the added value creation potential of the ESOL assets. We look forward to welcoming the ESOL team to Harsco and realizing the benefits of this highly strategic and accretive transaction.
We are encouraged by Clean Earth’s strong performance to date and believe that our stakeholders will benefit from a more diverse business that has the scale, market presence, and customer relationships to compete and win in the fragmented hazardous waste services industry. Since outlining our new corporate strategy less than 12 months ago, we have announced five transactions that position the Company as a high-growth, single-thesis environmental solutions business. As we look ahead, we continue to believe that shifting our portfolio to less-cyclical businesses with attractive growth potential is the best way to create sustainable, long-term value for Harsco and our shareholders.’
Cindy Miller of Stericycle said: ‘The sale of the Domestic Environmental Solutions business demonstrates important progress in our transformation as we improve margin percentages, reduce debt, enhance our balance sheet flexibility, and drive long-term shareholder value. As a focused provider of environmental solutions in the US, Harsco is well-positioned to drive this business forward, and we are confident this transaction is in the best interest of Stericycle and our shareholders, our customers, and team members. We thank our team members and customers for their continued support, and we look forward to working with Harsco to ensure a smooth transition.
Beyond our portfolio rationalization efforts, our team is focused on driving revenue quality and improving operational efficiencies across our business as well as the implementation of our global ERP system. As we continue to make progress on these initiatives, we stay committed to deepening our value proposition for clients with differentiated services and enhancing value for Stericycle shareholders.’
Goldman Sachs served as financial advisor to Harsco. Fried, Frank, Harris, Shriver & Jacobson, and Simpson Thacher & Bartlett served as legal advisors.
Stifel and Bank of America Securities served as financial advisors to Stericycle. Latham & Watkins served as legal advisor.
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