Ecoserv sold to US Ecology

Brown Gibbons Lang & Company (BGL) announced the sale of Ecoserv Industrial Disposal LLC, Winnie, Texas, to US Ecology, headquartered in Boise, Idaho. BGL’s environmental and industrial services team served as the financial advisor to Ecoserv in the transaction. 

According to a US Ecology news release, total consideration for the business and related property was $87.2 million, subject to a working capital adjustment, and will be funded from cash on hand and the company’s existing credit facility.

“This acquisition adds unique, high-volume industrial liquids disposal capabilities, complements other investments we’ve made in the region and strengthens our comprehensive environmental services offerings,” says Jeff Feeler, US Ecology’s chairman, president and CEO in a company news release. “The facility, permitted for a wide variety of nonhazardous industrial waste including solids, sludges, leachate and ammonia offers a lower cost alternative to traditional wastewater treatment.”

Ecoserv Industrial Disposal is a wholly owned subsidiary of Ecoserv LLC. According to BGL, Ecoserv is majority owned by Lariat Partners, a Denver-based private investment firm. Ecoserv Industrial Disposal serves as a nonhazardous industrial wastewater disposal solutions provider in the Gulf Coast region, offering economically efficient and environmentally safe disposal of an array of industrial waste streams. 

According to BGL, Ecoserv Industrial Disposal uses deep-well injection technology, operating several of the only commercial caprock injection wells fully permitted for difficult-to-treat Class 1 and Class 2 nonhazardous industrial wastewater streams, including solids, sludges, high metals, flammable exempt, leachate and ammonia. Ecoserv Industrial Disposal provides services to petrochemical, refinery, chemical, industrial and environmental services customers near key markets such as Houston; Beaumont, Texas; and Lake Charles, Louisiana.

Additionally, US Ecology reports that this acquisition will contribute approximately $9.0 million to its $10.0 million of adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) in 2019.