Clean Harbors Prices $600 Million Senior Notes to Fund EnviroServe and ES&H Acquisitions

Insider Monkey··US·Read original
3▲0 ▼0Impact / 5
Summary · why it matters

Clean Harbors Inc. has priced a $600 million private offering of senior notes to support its acquisition strategy. The notes mature in 2034, carry an interest rate of 6.250%, and were priced at 100% of their principal amount. Net proceeds will primarily finance the company's $470 million acquisition of EnviroServe, expected to close during the second half of 2026, with the remainder used to repay revolving-credit borrowings drawn to fund the $305 million all-cash acquisition of ES&H. Management expects around $25 million in cost synergies from EnviroServe over the first two years, bringing the post-synergy acquisition multiple to around 9 times adjusted EBITDA, while ES&H is projected to deliver around $90 million in annual base revenue contributions and roughly $5 million in cost synergies after the first full year. Clean Harbors cautioned there is no guarantee the acquisitions close on the anticipated terms, on schedule, or at all, and at a 6.250% coupon the notes would carry approximately $37.5 million in annual cash interest expense.

Impact on assets 1

Climate Adaptation & Water▲ · 1 stocks
Clean Harbors Inc
CLH
± MixedCapitalrelevance

Clean Harbors prices $600M senior notes at 6.25% to fund EnviroServe and ES&H acquisitions, adding ~$37.5M annual interest expense.

Off-coverage companies 2

EnviroServePrivate▲ Positive
Capitalrelevance

Clean Harbors' $470M acquisition of EnviroServe is being financed by the new notes, with ~$25M expected cost synergies.

ES&HPrivate▲ Positive
Capitalrelevance

Clean Harbors' $305M all-cash acquisition of ES&H is being funded, with ~$90M annual revenue and ~$5M synergies expected.

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