Compass Diversified Holdings (NYSE: CODI), an owner of leading middle market businesses, announced today that its subsidiary, Clean Earth, Inc. has acquired EWS Alabama, Inc..
Headquartered in Glencoe, Alabama, EWS has utilized advanced technologies to provide a wide range of hazardous and non-hazardous waste management services. EWS serves approximately 250 customers in eleven states across the country from its company-owned, 65,000 square foot fully permitted hazardous waste RCRA Part B facility. Situated on 42 acres, the facility is well equipped to handle various waste streams and to support increased capacity. For the trailing twelve months ended April 30, 2016, EWS reported net revenue of approximately $12 million. CODI funded the purchase price through a draw on its revolving credit facility.
Commenting on the transaction, Alan Offenberg, CEO of CODI, said, "Following our acquisition of Phoenix Soil in April, we are pleased to make our third accretive add-on acquisition since acquiring Clean Earth in 2014. The addition of EWS to Clean Earth will strengthen the company's waste management capabilities and expand its geographic presence in the Southeast market, while also creating solid cross-selling opportunities with existing customers. Going forward, we remain focused on using CODI's balance sheet strength to pursue further add-on and platform acquisitions of niche leading businesses that will drive cash flow and create long-term value for our shareholders."
Chris Dods, CEO of Clean Earth, commented, "Since 1996, EWS has been a leader in providing waste management services. Our combined geographic footprint will open up new markets for Clean Earth, expanding our customer base and enhancing our growth prospects. In addition, EWS's regulatory permits and extensive processing capabilities will enable us to recycle carbon black, utilize fuel blending, process medical waste and recycle new forms of non-hazardous waste, opening up new opportunities to service our existing regional customers as well as acquire new national customers."
About Compass Diversified Holdings ("CODI")
CODI owns and manages a diverse family of established North American middle market businesses. Each of its current subsidiaries is a leader in its niche market.
