HPC is a Deer Park, Texas-based provider of industrial cleaning, specialty maintenance and utilities services throughout the U.S. Clean Harbors purchased HPC from an affiliate of Littlejohn & Co. LLC, Greenwich, Connecticut, for $1.25 billion in an all-cash transaction.*
With more than 5,000 employees and 240 service locations throughout the country, HPC serves a range of end markets including the refining, chemical and utilities sectors. For 2021, as a standalone company, HPC estimated that it would generate revenues of approximately $744 million and adjusted EBITDA of approximately $115 million. Clean Harbors expects to achieve cost synergies of $40 million from the acquisition after the first full year of operations through eliminating redundant corporate expenses and capturing efficiencies in customer service, transportation, branch network, asset rentals, vehicle and tank refurbishment, subcontracting and procurement.
“HPC is an established leader in industrial services, with proprietary technology and a dedicated manufacturing center to fabricate its own tools. The addition of HPC’s experienced team, considerable assets and customer base create significant strategic benefits to Clean Harbors beyond just expanding the size and scale of our operations,” Alan McKim, chairman, president and CEO of Clean Harbors, says. “We expect HPC’s automation and hands-free technology capabilities to drive improvements in safety, and the acquisition to create multiple cross-selling opportunities that will drive incremental waste into our network. We welcome HPC’s talented team of employees to Clean Harbors and look forward to a smooth integration. We remain confident that this transaction will greatly enhance shareholder value in the years ahead and will support our growth momentum in 2022 and beyond.”
* The acquisition was financed through a combination of existing cash and proceeds from Clean Harbors’ new 2021 incremental term loan financing that was completed in conjunction with the transaction. The 2021 incremental term loans were issued in the aggregate principal amount of $1 billion at a rate of LIBOR +200 basis points and will become due in 2028.