FCC has reached an agreement to sell its US environmental services company to Heritage-Crystal Clean for 70 million euro. The sale provides FCC with a capital gain of 15.4 million euro and, in the words of Juan Béjar, Vice-Chairman and CEO, it “shows that FCC is continuing determinedly with the divestment programme under the Strategic Plan and is very close to the target of 2.2 billion euro, with the consequent reduction of debt”.
Heritage-Crystal Clean is a leading US company in the area of environmental services, specialised in recycling industrial oils. Based in Elgin, Illinois, it operates through 76 branches, serving over 97,000 customer locations. It manages chemical products used by small and mid-sized enterprises, its main market.
Its customers include businesses involved in vehicle maintenance operations, such as car dealerships, automotive repair shops, and trucking firms, as well as small manufacturers, such as metal product fabricators and printers.
In the words of Joseph Chalhoub, founder, President and CEO of Heritage-Crystal Clean, “this is our largest acquisition to date and it enables us to enhance our overall efficiency and greatly expand our environmental services activities.” Heritage-Crystal Clean calculates that the acquisition will provide over 15 million euro in synergies once the two companies are fully integrated, i.e. within approximately one year.
FCC Environmental belongs to the environmental services division of FCC, the Citizen Services Group. It operates mainly in the eastern half of the United States, where it has over 30,000 customers. Its services include managing and recycling industrial waste, particularly hydrocarbon waste. In 2013, FCC Environmental obtained approximately 130 million euro in revenues, with about 500 employees.
Fulfilling the Strategic Plan
The sale of FCC Environmental is in fulfilment of the Strategic Plan unveiled by FCC in March of last year. Since the Plan was implemented, in April 2013, the group has completed and agreed on divestments of non-core assets amounting to 1.8 billion euro.
With those divestments, which include FCC Logística and FCC Energía, the company has attained over 75% of the 2.2 billion euro target set out in the Plan. FCC, the Citizen Services Group, expects to raise the remaining 400 million euro in the coming quarters by divesting assets that are available for sale, such as Realia and Globalvía.