Safety-Kleen Parent Company Is Set to Acquire Used Motor Oil Collection and Re-Refining Assets from Vertex Energy
NORWELL, Mass. – June 29, 2021 – Safety-Kleen parent company Clean Harbors, the leading provider of environmental and industrial services in North America, today announced the signing of a definitive agreement with Houston-based Vertex Energy, Inc., to acquire certain assets related to its used motor oil collection and re-refinery business. The $140 million deal, which is expected to close in the third quarter of 2021, furthers Clean Harbors’ commitment to sustainability and will expand its footprint in the renewable lubricants and fuels markets.
Through Safety-Kleen, Clean Harbors already owns and operates the three largest oil re-refineries in North America, collecting and processing more than 220 million gallons of oil per year. The Vertex Energy acquisition will enable Clean Harbors to:
- Grow its re-refining network with a plant in Ohio and another in Louisiana
- Add annual production capacity of approximately 90 million gallons of waste oil, increasing Clean Harbors’ existing re-refining capacity by approximately 40 percent
- Strengthen waste oil collection capabilities, particularly in the Midwest and Gulf Coast regions
- Complement its existing assets with a strategically located waterfront terminal in the Houston ship channel
- Add an experienced team of employees and operations across seven states
- Grow the scale of its Safety-Kleen Sustainability Solutions (SKSS) segment and leverage operating efficiencies
- Generate cross-selling opportunities with its Environmental Services segment
“We believe that this transaction will generate significant value and return for our shareholders, as well as benefits to our current and prospective SKSS customers,” said Alan S. McKim, Chairman and Chief Executive Officer of Clean Harbors. “Expanding our re-refining network through the addition of the Vertex assets, which include our first re-refining operation in the Gulf Coast region, will enable us to further grow our presence in the renewable lubricants and fuels markets. Vertex’s waste oil collection and branch footprint complements our existing network of locations and expands our service capabilities within a number of key states.”
The Vertex assets being acquired include a 20-million-gallon re-refinery in Columbus, Ohio, and a 69-million-gallon re-refinery in Marrero, La. The deal involves 17 service branches strategically located throughout the Midwest and Gulf Coast, supported by 200 employees and a fleet of collection vehicles. “As customers continue to look for ‘greener’ solutions to reduce their impact on the environment, we believe that our closed-loop programs for collecting waste oil and producing finished lubricants or recycled fuels will become even more attractive in the coming quarters and years ahead,” McKim said. “The Vertex assets will support the growth strategies related to these sustainable offerings.”
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