NORWELL, Mass. & SYLVAN LAKE, Alberta--(BUSINESS WIRE)--Clean Harbors, Inc. (NYSE: CLH) (“Clean Harbors” or the “Company”) and Lonestar West Inc. (“Lonestar”) (TSX.V: LSI) today reported the completion of their previously announced transaction whereby Clean Harbors has acquired Lonestar. The transaction is valued at approximately CAD $43 million, including an equity payout of CAD $0.72 per share to Lonestar shareholders and the assumption of approximately CAD $22 million in outstanding debt, which Clean Harbors subsequently repaid. As a result of the transaction, Lonestar’s common shares will be delisted from the TSX Venture Exchange and Clean Harbors will apply to the relevant securities commissions for Lonestar to cease to be a reporting issuer under Canadian securities laws.
“The acquisition of Lonestar will accelerate our growth in the daylighting and hydro excavation services markets,” said Alan S. McKim, Clean Harbors Chairman, President and Chief Executive Officer. “In addition to essentially doubling the size of our hydro vac fleet, Lonestar’s network of locations will provide us with direct access to key geographic markets in both the United States and Canada. Given its attractiveness as a safe and cost-effective alternative to traditional excavation methods, we believe that the daylighting marketplace represents an outstanding multi-year growth opportunity.”
James P. Horvath, Lonestar’s President and Chief Executive Officer, said, “The combination of Clean Harbors and Lonestar will create a more formidable competitor. As a single organization, we will benefit from operational efficiencies and economies of scale, and increase our capabilities and service offerings for our combined customer base.”
Lonestar has more than 160 employees and maintains a network of 12 operating centers in key areas throughout Canada and the United States. The company generated revenues of CAD $43 million in 2016. Lonestar provides services for drilling operations, oil sands projects, plant maintenance, as well as commercial, municipal and civil projects.
About Clean Harbors
Clean Harbors (NYSE: CLH) is North America’s leading provider of environmental, energy and industrial services. The Company serves a diverse customer base, including a majority of the Fortune 500, across the chemical, energy, manufacturing and additional markets, as well as numerous government agencies. These customers rely on Clean Harbors to deliver a broad range of services such as end-to-end hazardous waste management, emergency spill response, industrial cleaning and maintenance, and recycling services. Through its Safety-Kleen subsidiary, Clean Harbors also is North America’s largest re-refiner and recycler of used oil and a leading provider of parts washers and environmental services to commercial, industrial and automotive customers. Founded in 1980 and based in Massachusetts, Clean Harbors operates throughout the United States, Canada, Mexico and Puerto Rico. For more information, visit www.cleanharbors.com.
Safe Harbor Statement
Any statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “plans to,” “estimates,” “projects,” or similar expressions. Such statements may include, but are not limited to, statements about future financial and operating results, and other statements that are not historical facts. Such statements are based upon the beliefs and expectations of Clean Harbors’ management as of this date only and are subject to certain risks and uncertainties that could cause actual results to differ materially including, without limitation, those items identified as “risk factors” in Clean Harbors’ most recently filed Form 10-K and Form 10-Q. Therefore, readers are cautioned not to place undue reliance on these forward-looking statements. Clean Harbors undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements other than through its filings with the Securities and Exchange Commission, which may be viewed in the “Investors” section of Clean Harbors’ website at www.cleanharbors.com.