Clean Harbors, Inc. (Clean Harbors or the company) and Lonestar West Inc. (Lonestar) have reported the completion of their previously announced transaction whereby Clean Harbors has acquired Lonestar. The transaction is valued at approximately CAN$43 million, including an equity payout of CAN$0.72 per share to Lonestar shareholders and the assumption of approximately CAN$22 million in outstanding debt, which Clean Harbors subsequently repaid. As a result of the transaction, Lonestar’s common shares will be delisted from the TSX Venture Exchange and Clean Harbors will apply to the relevant securities commissions for Lonestar to cease to be a reporting issuer under Canadian securities laws.
“The acquisition of Lonestar will accelerate our growth in the daylighting and hydro excavation services markets,” said Alan S. McKim, Clean Harbors Chairman, President and Chief Executive Officer. “In addition to essentially doubling the size of our hydro vac fleet, Lonestar’s network of locations will provide us with direct access to key geographic markets in both the United States and Canada. Given its attractiveness as a safe and cost effective alternative to traditional excavation methods, we believe that the daylighting marketplace represents an outstanding multi-year growth opportunity.”
James P. Horvath, Lonestar’s President and Chief Executive Officer, said, “The combination of Clean Harbors and Lonestar will create a more formidable competitor. As a single organisation, we will benefit from operational efficiencies and economies of scale, and increase our capabilities and service offerings for our combined customer base.”
Lonestar has more than 160 employees and maintains a network of 12 operating centres in key areas throughout Canada and the US. The company generated revenues of CAN$43 million in 2016. Lonestar provides services for drilling operations, oil sands projects, plant maintenance, as well as commercial, municipal and civil projects.
Read the article online at: https://www.hydrocarbonengineering.com/refining/17072017/clean-harbors-completes-acquisition/