NRC Group Holdings, a waste management company, has agreed to be acquired by US Ecology, an Idaho company, in an all-stock deal with an enterprise value of $966 million.
NRC has its head office in west Houston. It went public in October 2018 as part of a reverse takeover of a Hennessy Capital, a blank check company. NRC itself was established in June 2018 through a combination of two businesses, JFL-NRC Holdings (based in New York) and Sprint Energy Services (based in Houston). Both the companies were affiliates of PE firm, JF Lehman & Co.
NRC provides waste management services for industrial companies. It also provides spill containment and site remediation services as well as operating landfills in the Permian Basin for E&P operators. NRC had proforma 2018 revenues of $389 million and adjusted EBITDA of $91 million.
US Ecology, based in Boise, Idaho, also provides waste management services to industrial companies. The deal allows it to enter the oil and gas end market.
After the acquisition, the shareholders of US Ecology will own 70% of the combined company. It will keep the US Ecology name and will continue to be based in Boise.
The current chairman of NRC is Jim Baumgardner. He worked at US Ecology between 1999 and 2012, serving as CFO, COO & CEO during his time there.
The transaction is expected to close in the fourth quarter.