ELGIN, Ill., Nov. 4, 2013 (GLOBE NEWSWIRE) -- Heritage-Crystal Clean, Inc. (Nasdaq:HCCI) ("the Company"), a leading provider of parts cleaning, used oil re-refining, and hazardous and non-hazardous waste services primarily focused on small and mid-sized customers, today announced the signing of an asset purchase agreement by its subsidiary Heritage – Crystal Clean, LLC to acquire certain assets of RS Used Oil Services Inc., a subsidiary of Universal Lubricants LLC.
The acquired business includes service routes covering Indiana, Ohio, Wisconsin and portions of Illinois. Based on the historical performance of the business, the Company expects the transaction will result in additional used oil collection volume of approximately 8 million gallons per year. The used oil collection volume from this transaction will serve as an important source of supply for the Company's used oil re-refinery in Indianapolis, Indiana.
Mr. Joseph Chalhoub, Founder, President, and Chief Executive Officer of Heritage-Crystal Clean, Inc. commented: "We are very pleased to be adding the RS Used Oil Services personnel, in the selected area, to our team and their assets to our organization. We expect this acquisition will allow us to improve the overall efficiency of our used oil collection fleet and move us closer to our long term goal of collecting enough used oil to supply 100% of the feedstock required by our re-refinery."Chalhoub added: "With this acquisition, we expect to add approximately 3,800 new customers. The new used oil collection routes should fit nicely into our existing branch infrastructure and provide us the opportunity to offer additional value, beyond used oil collection, to these customers." Mr. Mark DeVita, Chief Financial Officer of HCCI added: "This transaction is our largest acquisition to date, and we expect it to integrate smoothly into our branch network. The consideration is all cash, paid out of our available cash on hand."
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