Clean Harbors Inc. has closed its acquisition of HEPACO, adding complementary environmental and emergency response capabilities in the Eastern U.S.

Clean Harbors acquired HEPACO from private equity backer Gryphon Investors for $400 million cash. Clean Harbors financed the transaction with proceeds from a recently completed $500 million term loan facility expansion.

Charlotte, North Carolina-based HEPACO has around 1,000 employees and a fleet of 900 vehicles spread across 40 regional locations in 17 states.

The company serves over 2,000 customers with field services, environmental remediation and emergency response services.

“HEPACO is an ideal cultural fit with our existing Field Services business, and we are confident that this will be a highly synergistic deal with strong margin improvement potential,” Clean Harbors co-CEO Eric Gerstenberg said in a March 25 release.

HEPACO produced full-year 2023 EBITDA of approximately $36 million on $270 million in revenue, on an adjusted basis. After a full year of combined operations, Clean Harbors expects to generate cost synergies of around $20 million.

Clean Harbors currently expects HEPACO to add $30 million of adjusted EBIDTA in 2024, based on the closing date of the deal.

“The addition of HEPACO’s highly trained team, specialized equipment, geographic footprint, and rail and marine service capabilities enables us to tap into additional markets, as well as cross-sell our full suite of environmental and industrial services,” said Clean Harbors Co-CEO Mike Battles in the release.

Massachusetts-based Clean Harbors provides environmental and industrial services to customers in chemicals, manufacturing, refining and government agencies. Clean Harbors’ subsidiary Safety-Kleen is North America’s largest re-refiner of used motor and cooking oils.