Under this agreement, US Ecology will purchase all of the outstanding shares of Stablex from Marsulex, a Toronto based provider of industrial services, through a combination of cash on hand and borrowings under a C$75m revolving acquisition credit facility.
The closing of the transaction, which is subject to normal and customary closing conditions, including a purchase price adjustment based on working capital, is expected to take place on 31 October 2010.
The agreement will enable US Ecology to acquire Stablex’s hazardous waste processing and disposal facility in Blainville, Quebec that utilizes proprietary technology to treat a wide range of hazardous waste.
The addition of the Stablex facility, which principally serves the eastern Canadian and northeastern US industrial markets, will provide US Ecology with a northeastern presence and a service platform to better serve key North American hazardous waste markets.
US Ecology CEO and president Jim Baumgardner said that the acquisition of Stablex, along with its pending acquisition of the Siemens facility in California, complements its strategy to acquire facilities to increase geographic footprint, augment services to existing customers, and attract new customers.
