Hello [firstname],
NORA has learned that member Heritage - Crystal Clean, Inc. has just announced their acquisition of the used oil collection assets of Crystal Flash L.P. of Michigan.
The release provided by Heritage - Crystal Clean, Inc. with the details is provided at the bottom of this email.
Thank you for being a member of NORA.
Scott D. Parker, NORA
sparker@noranews.org
703-753-4277
Heritage-Crystal Clean, Inc. Announces Acquisition of Crystal Flash Used Oil Collection
ELGIN, Ill., December 1, 2011 -- Heritage-Crystal Clean, Inc. (Nasdaq: HCCI, “the Company”), a leading provider of parts cleaning and hazardous and non-hazardous waste services to small and mid-sized customers, today announced the signing of an asset purchase agreement to acquire certain assets of the used oil collection business of Crystal Flash Limited Partnership of Michigan.
Crystal Flash Limited Partnership of Michigan, operating as "Crystal Flash Energy", will continue to operate its fuel distribution business, primarily within the State of Michigan, servicing over 30,000 customers for their fuel needs with a fleet of 125 trucks.
Based on the historical performance of Crystal Flash Energy, the Company expects the transaction will result in additional used oil collection volume of approximately 3.5 million gallons per year, primarily in the state of Michigan. The Company anticipates that this will serve as an important source of supply for its used oil re-refinery being built in Indianapolis, Indiana. The Company is acquiring the Crystal Flash Energy assets for approximately $3.5 million, consisting of approximately $1.7 million in cash at the time of closing and an estimated $1.8 million in future payments linked to the continuing performance of the acquired business.
Mr. Joseph Chalhoub, President and Chief Executive Officer of Heritage-Crystal Clean, Inc. commented: “We are very pleased to be adding the Crystal Flash Energy personnel to our team, and their assets to our organization. Crystal Flash Energy has a long and proud history as one of the best used oil collectors in the state of Michigan. We expect this acquisition to add approximately $6 to $7 million of annual revenue, based on current market prices and historical performance. Furthermore, once our re-refinery is complete, we plan to upgrade the value of the collected used oil by converting it to lube base stock.”
Chalhoub added: “With this acquisition, we expect to add approximately 2,000 new customers, and this should fit nicely into our existing branch infrastructure. Over the past decade, we have made significant investments to build a network that today includes 67 branch locations, and we have developed the excellent team that operates our business at each of these sites. Because of these historic investments, we have been able to smoothly merge acquired assets into our Company operations, and we have also been able to achieve organic growth in the used oil collection business.”
For more information, contact Greg Ray, Chief Financial Officer and VP Business Management, (847) 836-5670
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