US Ecology purchases Ecoserv Industrial Disposal
US Ecology has acquired Ecoserv Industrial Disposal, a wholly owned subsidiary of Ecoserv, and a provider of non-hazardous industrial wastewater disposal solutions in the Gulf Coast. The facility employs deep-well injection technology and is positioned within reach of markets such as Houston and Beaumont, Texas and Lake Charles, Louisiana, serving refinery, petrochemical, and environmental services customers. Total consideration for the business and related property was $87.2M, subject to a working capital adjustment, and will be funded from cash on hand and the company's existing credit facility. The transaction is expected to be accretive to EPS. The company expects no significant financial impact to 2018 EPS or Adjusted EBITDA for the six weeks of ownership in 2018 and reaffirms its previously issued 2018 earnings guidance. The company expects the acquisition to contribute $9.0M-$10.0M of Adjusted EBITDA in 2019.