Middle-market private equity firm Gryphon Investors has agreed to sell HEPACO, a provider of emergency response and scheduled environmental services, to Clean Harbors, a provider of environmental and industrial services, in a transaction valued at $400m.
The transaction is subject to customary closing conditions.
Gryphon first invested in HEPACO in 2016 and has completed seven add-on acquisitions over the course of its ownership. HEPACO’s services span critical emergency response, field and industrial services, and environmental remediation, and its clients stem from industries including transportation, utilities, and energy. HEPACO operates over 40 service centres across the eastern United States and employs approximately 1,000 people.
In a statement, Alex Earls, Partner and Head of Gryphon’s Business Services Group, said: “We have greatly enjoyed partnering with HEPACO management to build a premier company in the environmental and emergency services industry while more than tripling revenue and EBITDA.”
Phil Petrocelli, Gryphon Business Services Operating Partner, added: “Through organic operational initiatives and several highly strategic add-ons, HEPACO has significantly expanded its geographical reach, increased service area density, and diversified its offerings, emerging as a leading environmental service provider in the Eastern United States.”
Piper Sandler and Houlihan Lokey served as financial advisors to HEPACO, while Kirkland & Ellis and Moore & Van Allen acted as legal advisors.
