Heritage-Crystal Clean sold for $1.2 billion

HOFFMAN ESTATES — Heritage-Crystal Clean Inc. said it has entered into a definitive merger agreement to be acquired by an investment affiliate of J.F. Lehman & Co. for $1.2 billion.

Heritage-Crystal Clean provides for the cleaning of manufacturing machine parts, hazardous and nonhazardous waste services, used oil re-refining, antifreeze recycling, industrial and field services, and emergency and spill response services.

Under the terms of the merger agreement, J.F. Lehman will acquire all the outstanding shares of Crystal Clean for $45.50 per share in cash. The purchase price represents a premium of approximately 24.9% to Crystal Clean's 60-day volume-weighted average share price as of Wednesday, July 19, the last full trading day prior to the acquisition announcement.

“We are pleased to enter into this agreement with JFLCO, which we believe represents the best path forward for Crystal Clean to maximize value for our shareholders,” said Brian Recatto, Crystal Clean's president and CEO.

“At a time when businesses across industries are more environmentally conscious and highly focused on running cleaner, we are excited to partner with Crystal Clean — a clear category leader and unparalleled provider of environmental and waste disposal services,” said Glenn Shor, partner at J.F. Lehman & Co.

The transaction is expected to close in the fourth quarter of 2023, subject to customary closing conditions, including approval by Crystal Clean shareholders, the company said.