FCC Environmental US division sold for €70m
Leading waste management firm FCC Environmental has today (17 October) announced it is selling its division in the US to cleaning and waste management firm Heritage-Crystal Clean.
FCC Environmental, whose services include managing and recycling industrial waste including hydrocarbon waste, has been sold for €70m as part of FCC's ongoing divestment programme which has a target of €2.2bn.
Spanish infrastructure and environmental services group FCC calculates that the acquisition will provide more than €15m in synergies once the two companies are fully integrated, approximately within one year.
Heritage-Crystal Clean president and chief executive Joseph Chalhoub said: "This is our largest acquisition to date and it enables us to enhance our overall efficiency and greatly expand our environmental services activities."
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. Last year, FCC Environmental obtained more than €130m in revenues, with about 500 employees.
Along with other divestments, which include FCC Logística and FCC Energía, FCC has attained over 75% of the €2.2bn euro target set out in its Strategic Plan. The company expects to raise the remaining €400m in the coming quarters by divesting assets that are available for sale, such as Realia and Globalvía.
The Illinois-based Heritage-Crystal Clean currently operates 76 branches, serving over 97,000 customer locations. It manages chemical products used by SMEs - its main market.
Last year, FCC Global's UK branch FCC Environment threw its weight behind edie's Resource Revolution campaign, with the firm's group development director Richard Belfield taking part in our exclusive leader interview series.
In the below video, Belfield states that the circular economy 'could inject new levels of sophistication into the waste industry', speaking at length about the 'huge opportunities'" smarter resource management offers waste management firms in moving away from traditional disposal models.