Dive Brief:
- Heritage-Crystal Clean Inc. acquired industrial waste and recycling firm FCC Environmental’s U.S. operations for $89.31 million.
- FCC Environmental primarily handles hydrocarbon-based waste streams, while Heritage-Crystal Clean’s focus is industrial oil recycling.
- With revenue listed at $165.86 million last year, Houston, TX-based FCC Environmental sold the company in order to shrink its debt burden.
Dive Insight:
Heritage-Crystal Clean, based in Elgin, IL, operates 76 branches that include more than 97,000 customer locations. Joseph Chalhoub, the president, founder, and CEO of Heritage-Crystal Clean, said the purchase of FCC Environmental’s assets will allow the firm to increase its general efficiency and expand its “environmental services activities.”
Mark DeVita, Heritage-Crystal Clean’s CFO, expects the acquisition will generate $20 million within the next year once the firms are integrated. He said it’s the company’s largest acquisition so far.