Stablex sold to US company
TORONTO: Marsulex Inc. is selling its Stablex division, operator of a hazardous waste disposal plant northwest of Montreal, to an American company in a deal valued at about C$80 million.
The buyer is US Ecology Inc. of Boise, Idaho (Nasdaq:ECOL), which provides waste management and recycling services to governments and business.
Marsulex said Monday the transaction is part of the company’s strategic review and is slated to close Oct. 31. Money raised from the sale will be used by the company to pay down its debt.
Stablex operates a hazardous waste processing and disposal site in Blainville, 50 kilometres northwest of Montreal.
The plant employs 150 people, who serve industrial customers in eastern Canada and the northeastern United States. Stablex generated revenues of C$38.5 million last year.
“The addition of this superior facility to US Ecology’s family of permitted facilities provides us with a northeastern presence and an exceptional service platform to better serve key North American hazardous waste markets,” said US Ecology’s CEO and president Jim Baumgardner.
“The Stablex facility will allow us to enhance our service offering, bid and win more event work, and increase penetration of key national accounts.”
US Ecology said the purchase is being funded through a combination of cash and borrowings under a $75 million acquisition credit line.
“This acquisition of Stablex, along with our pending acquisition of the Siemens facility in Vernon, Calif., is consistent with our business strategy to acquire facilities that increase our geographic footprint, augment services to existing customers, and attract new customers,” added Baumgardner.
US Ecology said it expects the acquisition will contribute to earnings in 2011 and beyond, but the company plans to take one-time transaction and transition costs of seven cents a share on the deal.
© 2010 The Canadian Press