US Ecology continues North America expansion with $966 million deal

Correction: This article has been updated to indicate the correct number of employees at US Ecology.  

Boise-based US Ecology, which disposes of industrial wastes at a number of sites in the U.S., Canada and Mexico, said June 24 that it will merge its operations with another company working in the environmental remediation space.

US Ecology’s acquisition of Texas-based NRC Group Holdings – an all-stock transaction with a value of $966 million – will close by the end of the year following regulatory approvals, according to a joint press release issued by the companies.

The merger has already been approved by both companies’ boards of directors.

“The addition of NRCG’s substantial service network strengthens and expands US Ecology’s suite of environmental services,” said Jeffrey R. Feeler, the company’s president, CEO and board chairman. “This transaction will establish US Ecology as a leader in standby and emergency response services and adds a new waste vertical in oil and gas exploration and production landfill disposal to further drive waste volumes throughout the Gulf region.”

NRC Group is described as one of two leading oil spill removal organizations qualified to provide mandated standby emergency response for the transportation of oil products.

The merged businesses, which will use the US Ecology name, will maintain corporate headquarters in Boise, with regional support centers operating in Detroit, New York and Houston, the location of NRC Group’s headquarters. The company’s 1,500 employees will join US Ecology’s 1,700-person workforce.

“NRCG will bring highly complementary services and customers to US Ecology and will position the combined company as a leading player in industrial waste management while strengthening its position in the overall environmental services market,” said Christian T. Swinbank, president and CEO of NRCG. “We believe the combination will provide compelling upside for stockholders of both companies” due to the cross-selling opportunities.

US Ecology, which is publicly traded, reported revenue of nearly $566 million in 2018, up 12% from the previous year.

US Ecology provides waste management and recycling services for radioactive, hazardous and non-hazardous waste from commercial and government entities such as refineries and chemical production facilities, manufacturers, electric utilities, steel mills, medical and academic institutions and waste brokers.

In previous IBR stories about US Ecology acquisitions, Feeler said those deals would likely change employment in Idaho very little. US Ecology currently employs 100 people at its corporate office in Boise and 64 at a waste disposal site in Grand View.