Transaction to Enhance Its Offering to Customers in Southern California and Complement Its Nevada Operations
BOISE, ID–ECOL (Marketwired – August 04, 2016) – US Ecology, Inc. (NASDAQ: ECOL) (“the Company”) today announced that it has entered into an agreement to acquire the assets of the Vernon, California-based RCRA Part B, liquids and solids waste treatment and storage facility of Evoqua Water Technologies LLC (“Evoqua”). The Vernon facility will expand our market and competitive position in Southern California, leverage our existing fixed facilities and allow us to better service our customers. Terms of the transaction were not disclosed.
The Vernon facility, located approximately five miles southeast of downtown Los Angeles, is focused on the treatment, storage, recycling and offsite shipment of wastewaters, sludges and solids. Current capabilities include neutralization and precipitation of corrosive and metal bearing wastes, carbon adsorption of trace organic wastes, oil water separation, and hazardous waste storage and bulking for offsite shipment.
“The addition of the Vernon facility places us closer to our customers in the Southern California market with new capabilities,” commented Jeff Feeler, US Ecology’s Chairman and CEO. “It will also allow us to leverage our existing sales effort, streamline waste handling for our customers and internalize certain waste streams, while complementing our treatment and disposal assets in Nevada. This high quality permitted facility is strategically located in a key market and will provide opportunities for synergies and enhance growth across our Environmental Services and Field and Industrial Services businesses.”
The transaction is expected to close in the fourth quarter of 2016 and will be reported as part of our Environmental Services segment. Its financial contribution to the Company is not expected to have a material impact on US Ecology’s previously provided 2016 earnings guidance which was reaffirmed on July 28, 2016 in conjunction with the Company’s second quarter earnings release.
About US Ecology, Inc.
US Ecology, Inc. is a leading North American provider of environmental services to commercial and government entities. The Company addresses the complex waste management needs of its customers, offering treatment, disposal and recycling of hazardous, non-hazardous and radioactive waste, as well as a wide range of complementary field and industrial services. US Ecology’s focus on safety, environmental compliance, and best-in-class customer service enables us to effectively meet the needs of our customers and to build long-lasting relationships. Headquartered in Boise, Idaho, with operations in the United States, Canada and Mexico, the Company has been protecting the environment since 1952. For more information, visit www.usecology.com.
Forward-looking statements are only predictions and are not guarantees of performance. These statements are based on management’s beliefs and assumptions, which in turn are based on currently available information. Important assumptions include, among others, those regarding demand for Company services, expansion of service offerings geographically or through new or expanded service lines, the timing and cost of planned capital expenditures, competitive conditions and general economic conditions. These assumptions could prove inaccurate. Forward-looking statements also involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. Many of these factors are beyond our ability to control or predict. Such factors include the replacement of non-recurring event clean-up projects, a loss of a major customer, our ability to permit and contract for timely construction of new or expanded disposal cells, our ability to renew our operating permits or lease agreements with regulatory bodies, loss of key personnel, compliance with and changes to applicable laws, rules, or regulations, access to insurance, surety bonds and other financial assurances, a deterioration in our labor relations or labor disputes, our ability to perform under required contracts, failure to realize anticipated benefits and operational performance from acquired operations, adverse economic or market conditions, government funding or competitive pressures, incidents or adverse weather conditions that could limit or suspend specific operations, access to cost effective transportation services, fluctuations in foreign currency markets, lawsuits, our willingness or ability to pay dividends, implementation of new technologies, limitations on our available cash flow as a result of our indebtedness and our ability to effectively execute our acquisition strategy and integrate future acquisitions.
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