Clean Harbors Acquires EnviroServe for $470 Million in Cash
Clean Harbors (NYSE:CLH) has agreed to acquire EnviroServe from an affiliate of One Rock Capital Partners for $470 million in cash. The deal, expected to close by the end of the year, will be funded through a combination of existing cash and new debt. Clean Harbors anticipates achieving approximately $25 million in cost synergies within two years, reducing the acquisition multiple to around 9x Adjusted EBITDA. The acquisition is seen as strategic for expanding Clean Harbors' environmental services footprint across North America. EnviroServe brings a strong recurring revenue model (85% of total revenue), long-term customer relationships, and significant operational assets such as railcar cleaning facilities and an extensive fleet. However, risks include integration challenges, potential delays in synergy realization, increased leverage from new debt, and possible customer attrition during the transition. Institutional interest has grown recently, with 61 hedge funds holding positions by Q2 2026 compared to 51 previously. BlackRock is Clean Harbors' largest institutional investor.
Tickers: $CLH
Topics: environmental services mergers and acquisitions synergy analysis