Heritage-Crystal Clean shares soared on the news that the environmental services company is being acquired by an investment affiliate of private equity firm J.F. Lehman & Company (JFLCO), in an all-cash transaction valued at $1.2 billion.
The firm will acquire Crystal Clean for $45.50 per share, representing a 24.9% premium to its 60-day volume-weighted average price on July 19, 2023.
The transaction is expected to close in the fourth quarter of 2023, subject to customary closing conditions.
"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," Crystal Clean CEO Brian Recatto said in a statement.
"For more than 20 years, we have executed on our mission and thoughtfully grown Crystal Clean to become the partner of choice nationwide for premier environmentally-sustainable solutions that have a tangible impact for customers, and we are excited to embark on this new chapter."
Heritage-Crystal Clean is a provider of parts cleaning, hazardous and non-hazardous waste services, used oil re-refining, antifreeze recycling, industrial and field services, and emergency and spill response services.
Its shares added 10.3% at US$46.25 on Thursday afternoon.
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