Heritage-Crystal Clean Inc. (HCCI), a provider of parts cleaning, used oil re-refining, and hazardous and non-hazardous waste services primarily focused on small and mid-sized customers, announced the signing of an asset purchase agreement by its subsidiary Heritage-Crystal Clean LLC to acquire certain assets of RS Used Oil Services Inc., a subsidiary of Universal Lubricants LLC.
The acquired business includes service routes covering Indiana, Ohio, Wisconsin and portions of Illinois. Based on the historical performance of the business, the company expects the transaction will result in additional used oil collection volume of approximately 8 million gal per year. The used oil collection volume from this transaction will serve as an important source of supply for the company's used oil re-refinery in Indianapolis.
"With this acquisition, we expect to add approximately 3,800 new customers,” said Joseph Chalhoub, founder, president and CEO of HCCI. “The new used oil collection routes should fit nicely into our existing branch infrastructure and provide us the opportunity to offer additional value, beyond used oil collection, to these customers."
"This transaction is our largest acquisition to date, and we expect it to integrate smoothly into our branch network,” said Mark DeVita, CFO of HCCI “The consideration is all cash, paid out of our available cash on hand."
Universal Lubricants and RS Used Oil Services will continue to operate its used oil collection business in all areas in the Midwestern and Southern U.S. not covered by this asset purchase agreement, including portions of Illinois served from their facility in Roxana, Ill (St. Louis area). Universal Lubricants also will continue to sell finished lubricants and related products to customers throughout the U.S.
Source: Heritage-Crystal Clean Inc.
