Clean Harbors announced the acquisition of Terra Nova Solutions in an all-cash transaction valued at $225 million. The acquisition strengthens Clean Harbors’ hazardous and non-hazardous waste service capabilities across the Carolinas region while expanding its Technical Services and Field Services operations.
Terra Nova Solutions operates five sites focused on wastewater treatment, solidification and waste processing, supporting recurring, high-margin revenue streams. Clean Harbors expects the acquired business to generate between $45 million and $50 million in annual revenue along with approximately $15 million in Adjusted EBITDA.
The company anticipates approximately $4 million in annual synergies after the first full year of operations, resulting in an implied post-synergy acquisition multiple of 11.8x.
According to Clean Harbors, the acquisition enhances its waste-handling network while adding complementary services including drum collection, wastewater treatment, tank cleaning and vacuum services. Terra Nova’s operations also bring significant infrastructure capacity, including the ability to treat 35 million gallons of wastewater annually and more than 85 million gallons of solidification capacity.
The acquisition also expands Clean Harbors’ transportation fleet through the addition of approximately 150 specialized trucks and tankers. Terra Nova’s workforce of more than 100 employees will join the Clean Harbors organization.
Mike Battles said the company remains focused on acquisitions that strengthen its core business operations and deliver attractive returns. He noted that Terra Nova’s long-standing customer relationships and regional leadership in waste treatment and processing make it a strong strategic fit.
Eric Gerstenberg highlighted Terra Nova’s more than two decades of serving the Carolinas market with environmental and waste solutions. He added that the company’s treatment capacity, fleet assets and workforce would further support Clean Harbors’ growth strategy.
Davis, Malm & D’Agostine, P.C. served as legal advisor to Clean Harbors. Raymond James acted as exclusive financial advisor to Terra Nova Solutions, while Willkie Farr & Gallagher LLP served as legal advisor to Terra Nova.
KEY QUOTES:
“We continue to prioritize M&A transactions with strong return profiles that enhance our core businesses. We believe Terra Nova will be an ideal strategic fit to our waste-handling network. They are a recognized regional leader in waste treatment and processing that brings to us a blue-chip, long-tenured customer base. In addition, Terra Nova has multiple service offerings that align well with our Technical Services and Field Services businesses, including drum collection, wastewater treatment, tank cleaning and vacuum services. We expect the transaction to create incremental cross-selling opportunities.”
Mike Battles, Co-Chief Executive Officer, Clean Harbors
“For more than 20 years, Terra Nova and its predecessor company have served the Carolinas region with a variety of environmental and waste solutions. Its locations have the annual capacity to treat 35 million gallons of wastewater, along with more than 85 million gallons of solidification capacity. Their 150 specialized trucks and tankers will be a welcome addition to our vehicle fleet. We also believe their more than 100 customer-focused employees will benefit from the opportunities for career advancement within our larger organization. We look forward to incorporating those talented folks into the Clean Harbors family.”
Eric Gerstenberg, Co-Chief Executive Officer, Clean Harbors
