US Ecology to Purchase Dynecol for $11.25M
US Ecology (NASDAQ: ECOL) announced Monday that it has entered into a definitive agreement with PVS Chemicals to acquire the stock of its wholly owned subsidiary Dynecol. Dynecol owns and operates a permitted Treatment, Storage and Disposal facility located in Detroit, Michigan. The facility, which has been in operation since 1974, principally provides hazardous liquid waste services to the Midwest United States and Canadian industrial markets. The Facility generated revenue ranging from approximately $9 to $14 million annually over the last several years and has approximately 35 employees.
Under the terms of the Agreement, the Company will purchase all Dynecol's common stock for $11.25 million using borrowings from its existing credit agreement. The closing of the acquisition is subject to the transfer of certain regulatory permits, among other things, and is expected to be completed before June 1, 2012. The acquisition is expected to be neutral to 2012 earnings after transaction costs are excluded and accretive thereafter.
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