US Ecology, Inc. has entered into a definitive stock purchase agreement to acquire The Environmental Quality Company (EQ), an environmental services and waste management company based in Wayne, Michigan, with facilities throughout the Eastern U.S. EQ is owned by an affiliate of New York based private equity fund Kinderhook Industries, LLC. The transaction, valued at $465 million, is expected to close in the second or third quarter of 2014 and is subject to customary closing conditions, and a purchase price adjustment based on working capital. The acquisition is expected to be accretive to adjusted earnings per share for the full year 2014.
The total purchase price of $465 million will be financed using a combination of cash on hand and committed debt financing, consisting of a new $540 million credit facility made up of approximately $415 million in a 7 year term loan and a $125 million 5 year revolving credit facility.
Published in the June 2014 Edition of American Recycler News