Environmental services provider US Ecology on Monday announced it would acquire an energy industry-focused remediation and response company.
The $966 million, all-stock buyout of NRC Group Holdings (NRCG) is expected to be completed in the fourth quarter of the year, pending stockholder and regulatory approval, according to a US Ecology press release.
“The addition of NRCG’s substantial service network strengthens and expands US Ecology’s suite of environmental services,” US Ecology President and CEO Jeff Feeler said in the release. “This transaction will establish US Ecology as a leader in standby and emergency response services and adds a new waste vertical in oil and gas exploration and production landfill disposal to further drive waste volumes throughout the Gulf region.”
Houston-based NRC Group Holdings focuses on the oil and gas industries, including as one of two top U.S. oil spill removal organizations. However, it also provides services in nuclear cleanup and radioactive waste management, one of the bread-and-butter markets for Boise, Idaho-based US Ecology.
NRC Group Holdings provides management services for naturally occurring radioactive materials (NORM) that can be produced by oil and gas extraction activities. Services include extraction, decontamination, processing, and disposal of the material, according to the NRCG website.
The company has also done at least two jobs at the retired Dounreay fast-reactor research site in Scotland: asbestos removal and remediation of steam turbine oil system piping.
The companies’ boards of directors have already approved the deal. When it closes, US Ecology shareholders will own roughly 70% of the merged company, with NRCG shareholders owning the rest. It will operate under the US Ecology name, with Feeler remaining president, CEO, and board chairman.
NRC Group Holdings in 2018 brought in $389 million in revenue and $91 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). The business is anticipated to provide roughly $120 million to US Ecology’s adjusted EBITDA in the initial 12-month period after the sale closes.
