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  • Writer's pictureShernel Thielman

Heritage-Crystal Clean, Inc. to be Acquired by J.F. Lehman & Company for $1.2 Billion

Title: Heritage-Crystal Clean, Inc. to be Acquired by J.F. Lehman & Company for $1.2 Billion



Introduction:


Heritage-Crystal Clean, Inc. (Nasdaq: HCCI), a leading provider of environmentally sustainable solutions, has recently announced its agreement to be acquired by J.F. Lehman & Company (JFLCO), a prominent private equity firm focused on aerospace, defense, maritime, and environmental sectors. The all-cash transaction, valued at approximately $1.2 billion, is set to provide Crystal Clean shareholders with $45.50 per share.


The Acquisition:


Crystal Clean's diverse services include parts cleaning, hazardous waste management, oil re-refining, antifreeze recycling, and emergency spill response. The merger with JFLCO is seen as a strategic step to enhance Crystal Clean's growth prospects and maximize value for its shareholders. The purchase price represents a significant premium, further indicating the confidence of JFLCO in the company's potential.


Benefits and Vision:


Brian Recatto, President, and CEO of Crystal Clean, expressed enthusiasm about the merger, emphasizing that it offers increased flexibility and a knowledgeable partner in JFLCO. The alignment of their visions and the shared commitment to environmental sustainability make JFLCO an ideal match for Crystal Clean. This partnership is expected to reinforce the company's position as a trusted provider of environmental and waste disposal services.


Transaction Details:


The transaction is expected to conclude in the fourth quarter of 2023, subject to customary closing conditions and shareholder approval. Upon completion, Crystal Clean will become a privately held company, delisting its common stock from the Nasdaq Stock Exchange and other public markets.


The financing for the acquisition is fully committed, providing certainty for the successful execution of the deal. Additionally, Crystal Clean's major shareholders, The Heritage Group and affiliates, along with Brian Recatto, have pledged their support for the merger.


"Go-Shop" Provision:


In a bid to explore alternative proposals, the merger agreement includes a "go-shop" provision, allowing Crystal Clean to solicit and evaluate competing offers during a 35-day period. The company will remain discreet about the process until it determines the appropriateness of disclosure.


Conclusion:


The acquisition of Heritage-Crystal Clean, Inc. by J.F. Lehman & Company marks a transformative phase for both entities. With a focus on environmental sustainability and an unwavering commitment to customers, this strategic alliance is poised to drive long-term success and unlock new opportunities for the company in the dynamic waste management sector.


Investment Disclaimer:


This blog post is for informational purposes only and should not be construed as investment advice. Investing in private equity and individual stocks involves inherent risks, including potential financial losses. Before making any investment decisions, it is recommended to consult with a qualified financial advisor. The author do not endorse or recommend any specific investment products or strategies. The information provided in this blog post is based on publicly available sources and should not be considered as a guarantee of future investment performance.

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