Heritage-Crystal Clean, Inc Signs Definitive Agreement to Acquire Patriot Environmental

Heritage-Crystal Clean, Inc. (Nasdaq: HCCI), 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 it has entered into a definitive agreement to acquire Patriot Environmental Services, Inc. (“Patriot”).

Patriot is a leading provider of environmental services across the Western United States specializing in a wide variety of waste services, including emergency response, industrial services, and OSRO spill response. Patriot provides full-service environmental solutions to a wide variety of end markets, serving customers within manufacturing, agriculture, construction, healthcare, mining, oil & gas, transportation, and utilities markets. From custom on-site services to industrial waste disposal, as well as wastewater treatment, Patriot operates at eighteen locations in the western and southern United States.

Heritage-Crystal Clean, Inc.’s President and CEO Brian Recatto commented, “The acquisition of Patriot will fortify our presence in the Western U.S. and enhance our nationwide service. With the addition of Patriot’s two wastewater treatment facilities, we will have ten wastewater treatment facilities throughout our network, thereby strengthening our national wastewater vacuum platform. Patriot also possesses other non-hazardous waste processing capabilities which will increase our vertical integration and support our containerized waste business in the Western U.S. reducing our logistics and disposal costs and improving our ability to compete in the larger quantity industrial generator market. In addition, this acquisition will allow us to internalize some of the field service work we currently outsource to subcontractors which should improve our profitability for these services.”

Recatto commented further, “We are very excited to welcome all of the employees of Patriot to the Heritage-Crystal Clean team. We look forward to working with our new colleagues to achieve continued success and provide premier, environmentally sustainable solutions to our customers.”

Josh Teves, President of Patriot, commented, “On behalf of the Patriot team, we are delighted to combine forces with HCCI and we are eager to leverage the Crystal Clean menu of services to deliver even more value to our customers.”

The transaction, which is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary closing conditions, is expected to close in the third quarter of 2022.