Clean Harbors buys Evergreen OilStaff writer ▼ | September 17, 2013
Evergreen Oil is one of the state's largest collectors of waste oil and runs the only re-refinery in the state. Clean Harbors is funding the $60 million transaction through available cash on its balance sheet.
The acquisition of Evergreen Oil is beneficial to Clean Harbors on a number of fronts. It will expands Clean Harbors' geographic footprint in re-refining to include coverage in the Western U.S., complementing its Indiana facility in the Midwest and Breslau facility in Eastern Canada; provides Clean Harbors with the second-largest collector of waste oil in California; and provides Clean Harbors with a number of valuable ancillary waste assets, including a permitted Treatment, Storage and Disposal Facility (TSDF).
"Our acquisition of Evergreen aligns well with our Safety-Kleen re-refinery and environmental businesses, and creates multiple opportunities for profitable growth. California is an attractive market for us, and Evergreen has a strong presence in the state.
Given the financial incentives available in California and that used oil is designated as hazardous, the addition of Evergreen will contribute to Safety-Kleen's ongoing initiative to lower its pay-for-oil (PFO) costs," said Alan S. McKim, chairman and chief executive officer. ■