Clean Harbors received approval from the U.S. Federal Trade Commission on May 5 to acquire Terra Nova Solutions, an industrial waste and wastewater services company based in North Carolina.
Terra Nova is a portfolio company of Crescentia Capital, a private equity firm that's part of Maryland-based Calvert Street Investment Partners. Crescentia Capital has also invested in other C&D waste and industrial companies.
Crescentia Capital and Clean Harbors both did not respond to requests for comment.
Terra Nova launched in 2018 through the acquisition of Zebra Environmental, the latter of which dates back to 2005. It subsequently grew through acquisitions including Pinnacle Environmental, based in Greenville, South Carolina; Hazmat Emergency Response and Remediation of Whiteville and Thomasville, North Carolina; and Lee County Solid Waste Facility in Bishopville, South Carolina, per the company's website.
Terra Nova says it has 20 million gallons of wastewater treatment capacity and 23 million tons of solidification capacity across five locations. It also has about 150 specialized trucks and tankers and 120 employees. Its waste management services cover non-hazardous industrial waste, solidification, recycling services, drum and tote management and waste transportation. It also offers industrial emergency response services.
Clean Harbors has an existing presence in North Carolina and South Carolina that could be complementary to Terra Nova’s footprint and existing services.
This is the second major acquisition Clean Harbors has pursued this year. It previously disclosed a carveout of Depot Connect International's environmental services business. The $131.8 million deal included five locations in Ohio, Louisiana and Texas, two of which had wastewater treatment and solidification capabilities.
The company projects $40 million in annual revenue from the assets included in that deal, Clean Harbors co-CEO Mike Battles said on the company's fourth-quarter earnings call in February.
Clean Harbors held its first-quarter earnings call on Tuesday, during which executives reiterated that they have a strong pipeline of potential acquisitions that they plan to execute on this year, including tuck-ins.
"There's many other opportunities out there, all in our swim lane, primarily in environmental services, that have permanent facilities that feed our network or have a large collection network," Battles said.
The environmental services sector as a whole is in the process of consolidation similar to long-term trends in solid waste and recycling. That includes a deal in which Veolia North America is set to acquire Enviri's Clean Earth business. Enviri's shareholders recently approved the deal, which is now set to close on June 1.
