Heckmann Corporation (NYSE: HEK)
(“Heckmann”) today announced that it has completed the previously announced acquisition of TFI Holdings, Inc. and Thermo Fluids Inc. (collectively “TFI”), a route-based environmental services and waste recycling solutions company that focuses primarily on the collection and recycling of used motor oil (“UMO”).
The addition of TFI extends Heckmann’s single-source environmental solutions offering for the oil and gas industries, beyond water services solutions. This new business segment will be called Heckmann Environmental Services, or HES, and will be a “one-stop” shop for collection and recycling services of waste products, including used motor oil, wastewater, spent antifreeze, remanufactured antifreeze sales, used oil filters and parts washers.
“Three years ago, we established a business model for environmental service solutions. We built this foundation with our total water and wastewater solutions for the shale oil and gas industry. Acquiring the largest seller of preprocessed fuel oil from recovered used motor oil, or UMO, in the Western United States represents our next phase of growth,” said Richard J. Heckmann, Chairman and Chief Executive Officer of Heckmann Corporation. “We can now provide more comprehensive service offerings among the environmental services spectrum. HES augments our proven capabilities in water and wastewater services by diversifying our operations, revenue stream, geographic reach and customer base, while accelerating our top-line growth and providing us with significant free operating cash flow.”
Including HWR and HES, Heckman pro-forma 2011 financial results would have been $270.6 million in revenues. Assuming three quarters of operations, Heckmann expects its HES business segment to generate revenues between $105 and $115 million for the nine-month period beginning in April 2012.
James Devlin, President and Chief Operating Officer of HES stated, “We have one of the largest environmental services networks in the Western United States. Our established business provides a steady, predictable revenue stream with growth opportunities driven by an increasing demand for reprocessed fuel oil, or RFO. Our business and corporate culture are well aligned with Heckmann, and we look forward to augmenting HWR’s operations with a complementary business segment poised for future growth.”