Clean Harbors Acquires Terra Nova Solutions for $225M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy CLH?
Source: seekingalpha
- Acquisition Announcement: Clean Harbors has announced the acquisition of Terra Nova Solutions for $225 million in cash, a strategic move aimed at enhancing its technical and field services business, thereby solidifying its market position in waste management.
- Revenue Expectations: Clean Harbors anticipates that Terra Nova will generate between $45 million and $50 million in annual revenue, contributing approximately $15 million in adjusted EBITDA, indicating strong financial potential from this acquisition.
- Synergy Realization: The company expects to achieve around $4 million in synergies after the first full year of operation, which will further enhance profitability and operational efficiency.
- Processing Capacity: Terra Nova operates five sites in the Carolinas with the capacity to treat 35 million gallons of wastewater and over 85 million gallons of solidification annually, supporting high-margin, recurring revenue streams.
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Analyst Views on CLH
Wall Street analysts forecast CLH stock price to fall
8 Analyst Rating
5 Buy
3 Hold
0 Sell
Moderate Buy
Current: 308.400
Low
230.00
Averages
263.14
High
290.00
Current: 308.400
Low
230.00
Averages
263.14
High
290.00
About CLH
Clean Harbors, Inc. is a provider of environmental and industrial services. The Company delivers a range of services, such as end-to-end hazardous waste management, emergency spill response, industrial cleaning and maintenance, and recycling services. Its Environmental Services segment offers an array of services to customers. It collects, transports, treats and disposes of hazardous and non-hazardous waste through its network of waste disposal facilities, including incinerators, landfills, treatment, storage and disposal facilities (TSDFs), wastewater treatment facilities and solvent recycling centers. Its Safety-Kleen Sustainability Solutions (SKSS) segment offerings span the lifecycle of sustainable lubricant products. It collects used oil which serves as feedstock for its oil re-refineries. At these facilities, it manufactures, formulates and packages lubricants which are returned to the marketplace. It also provides parts washers and environmental services to various customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Clean Harbors Acquires Terra Nova for $225 Million
- Acquisition Overview: Clean Harbors has announced the acquisition of Terra Nova Solutions for $225 million in cash, which will be funded through available cash, aiming to enhance the company's technical and field services businesses.
- Financial Expectations: The acquisition is expected to generate annual revenues of $45 million to $50 million and approximately $15 million in Adjusted EBITDA, with anticipated synergies of about $4 million after the first full year of operation, resulting in a post-synergy multiple of 11.8x.
- Strategic Market Fit: As a recognized regional leader in waste treatment and processing, Terra Nova's diverse service offerings align well with Clean Harbors' Technical Services and Field Services, creating additional cross-selling opportunities and strengthening market position.
- Operational Capacity Enhancement: Terra Nova's facilities have an annual capacity to treat 35 million gallons of wastewater and over 85 million gallons of solidification capacity, and its fleet of 150 specialized trucks and tankers will enhance Clean Harbors' operational efficiency and service capabilities.
See More
Clean Harbors Acquires Terra Nova Solutions for $225M
- Acquisition Announcement: Clean Harbors has announced the acquisition of Terra Nova Solutions for $225 million in cash, a strategic move aimed at enhancing its technical and field services business, thereby solidifying its market position in waste management.
- Revenue Expectations: Clean Harbors anticipates that Terra Nova will generate between $45 million and $50 million in annual revenue, contributing approximately $15 million in adjusted EBITDA, indicating strong financial potential from this acquisition.
- Synergy Realization: The company expects to achieve around $4 million in synergies after the first full year of operation, which will further enhance profitability and operational efficiency.
- Processing Capacity: Terra Nova operates five sites in the Carolinas with the capacity to treat 35 million gallons of wastewater and over 85 million gallons of solidification annually, supporting high-margin, recurring revenue streams.
See More
Clean Harbors Acquires Terra Nova Solutions
- Acquisition Announcement: Clean Harbors has announced the acquisition of Terra Nova Solutions, which will enhance its market position in hazardous waste management and is expected to create new growth opportunities for the company.
- Market Expansion: This acquisition allows Clean Harbors to broaden its service offerings, particularly in hazardous waste treatment and environmental services, further solidifying its leadership in the industry.
- Financial Impact: While specific financial terms have not been disclosed, the acquisition is anticipated to positively affect Clean Harbors' revenue and profitability, driving future financial growth for the company.
- Strategic Significance: This acquisition is not only a key move for Clean Harbors to expand its market share but also demonstrates the company's commitment to ongoing investments in the environmental services sector to meet the growing market demand.
See More
CLEAN HARBORS INC: NEEDHAM INCREASES TARGET PRICE TO $325, UP FROM $308
- Price Increase Announcement: Clean Harbors has raised its target price to $325 from $308.
- Market Impact: This adjustment reflects the company's growth expectations and market performance.
See More
Clean Harbors (CLH) Q1 2026 Earnings Transcript
See More
Clean Harbors Exceeds Q1 2026 Earnings Expectations
- Profitability Improvement: Clean Harbors reported Q1 2026 revenue of $1.46 billion, a 2% increase year-over-year, with adjusted EBITDA rising 6% to $248 million, demonstrating strong performance in both Environmental Services and Safety-Kleen Sustainable Solutions despite challenging weather conditions.
- Safety Metric Achievement: The company achieved its lowest total recordable incident rate in history at just 0.39 in Q1, reflecting ongoing improvements in safety management, which not only boosts employee morale but also enhances customer trust, aiding future business expansion.
- Optimistic Outlook: CFO Dugas raised the 2026 adjusted EBITDA guidance to a range of $1.24 billion to $1.30 billion, an increase of $40 million from prior expectations, indicating confidence in future market demand, particularly amid rising base oil prices.
- Cash Flow Improvement: Adjusted free cash flow is expected to range between $490 million and $550 million; although Q1 experienced negative cash flow due to seasonality, the overall financial health remains strong with stable liquidity and leverage ratios.
See More
Clean Harbors Acquires Terra Nova for $225 Million
- Acquisition Overview: Clean Harbors has announced the acquisition of Terra Nova Solutions for $225 million in cash, which will be funded through available cash, aiming to enhance the company's technical and field services businesses.
- Financial Expectations: The acquisition is expected to generate annual revenues of $45 million to $50 million and approximately $15 million in Adjusted EBITDA, with anticipated synergies of about $4 million after the first full year of operation, resulting in a post-synergy multiple of 11.8x.
- Strategic Market Fit: As a recognized regional leader in waste treatment and processing, Terra Nova's diverse service offerings align well with Clean Harbors' Technical Services and Field Services, creating additional cross-selling opportunities and strengthening market position.
- Operational Capacity Enhancement: Terra Nova's facilities have an annual capacity to treat 35 million gallons of wastewater and over 85 million gallons of solidification capacity, and its fleet of 150 specialized trucks and tankers will enhance Clean Harbors' operational efficiency and service capabilities.
See More
Clean Harbors Acquires Terra Nova Solutions for $225M
- Acquisition Announcement: Clean Harbors has announced the acquisition of Terra Nova Solutions for $225 million in cash, a strategic move aimed at enhancing its technical and field services business, thereby solidifying its market position in waste management.
- Revenue Expectations: Clean Harbors anticipates that Terra Nova will generate between $45 million and $50 million in annual revenue, contributing approximately $15 million in adjusted EBITDA, indicating strong financial potential from this acquisition.
- Synergy Realization: The company expects to achieve around $4 million in synergies after the first full year of operation, which will further enhance profitability and operational efficiency.
- Processing Capacity: Terra Nova operates five sites in the Carolinas with the capacity to treat 35 million gallons of wastewater and over 85 million gallons of solidification annually, supporting high-margin, recurring revenue streams.
See More
Clean Harbors Acquires Terra Nova Solutions
- Acquisition Announcement: Clean Harbors has announced the acquisition of Terra Nova Solutions, which will enhance its market position in hazardous waste management and is expected to create new growth opportunities for the company.
- Market Expansion: This acquisition allows Clean Harbors to broaden its service offerings, particularly in hazardous waste treatment and environmental services, further solidifying its leadership in the industry.
- Financial Impact: While specific financial terms have not been disclosed, the acquisition is anticipated to positively affect Clean Harbors' revenue and profitability, driving future financial growth for the company.
- Strategic Significance: This acquisition is not only a key move for Clean Harbors to expand its market share but also demonstrates the company's commitment to ongoing investments in the environmental services sector to meet the growing market demand.
See More
CLEAN HARBORS INC: NEEDHAM INCREASES TARGET PRICE TO $325, UP FROM $308
- Price Increase Announcement: Clean Harbors has raised its target price to $325 from $308.
- Market Impact: This adjustment reflects the company's growth expectations and market performance.
See More
Clean Harbors (CLH) Q1 2026 Earnings Transcript
See More
Clean Harbors Exceeds Q1 2026 Earnings Expectations
- Profitability Improvement: Clean Harbors reported Q1 2026 revenue of $1.46 billion, a 2% increase year-over-year, with adjusted EBITDA rising 6% to $248 million, demonstrating strong performance in both Environmental Services and Safety-Kleen Sustainable Solutions despite challenging weather conditions.
- Safety Metric Achievement: The company achieved its lowest total recordable incident rate in history at just 0.39 in Q1, reflecting ongoing improvements in safety management, which not only boosts employee morale but also enhances customer trust, aiding future business expansion.
- Optimistic Outlook: CFO Dugas raised the 2026 adjusted EBITDA guidance to a range of $1.24 billion to $1.30 billion, an increase of $40 million from prior expectations, indicating confidence in future market demand, particularly amid rising base oil prices.
- Cash Flow Improvement: Adjusted free cash flow is expected to range between $490 million and $550 million; although Q1 experienced negative cash flow due to seasonality, the overall financial health remains strong with stable liquidity and leverage ratios.
See More
