Littlejohn to sell HPC for $1.25bn

Littlejohn & Co has agreed to sell HydroChemPSC to Clean Harbors for $1.25 billion.

Littlejohn & Co has agreed to sell HydroChemPSC to Clean Harbors for $1.25 billion. Moelis & Company is serving as financial advisor to HydroChemPSC and Troutman Pepper Hamilton Sanders is serving as its legal counsel. HPC is a provider of industrial cleaning, specialty maintenance and utilities services.

PRESS RELEASE

GREENWICH, Conn.–(BUSINESS WIRE)–Littlejohn & Co. LLC, a private investment firm based in Greenwich, CT, today announced that its affiliate has entered into a definitive agreement to sell HydroChemPSC (“HPC” or the “Company”), a leading provider of industrial cleaning, specialty maintenance and utilities services with more than 240 service locations throughout the United States, to Clean Harbors, Inc. (“Clean Harbors”) (NYSE: CLH) for $1.25 billion in cash.

Under Littlejohn’s ownership, HPC was transformed into an industry leader through strategic M&A and organic growth initiatives. The Company executed five acquisitions, including the merger of PSC and HydroChem in 2017. Additionally, HPC expanded its engineered services business unit, creating a new specialty mechanical service offering; invested in technology to improve worker safety, productivity and service delivery in the field; and developed a data analytics platform that enhanced HPC’s ability to deliver more efficient and effective service to its customers.

Michael Kaplan, a Managing Director at Littlejohn, said, “HydroChemPSC is emblematic of Littlejohn’s approach to building great businesses. We are incredibly proud of our partnership with HPC and of what we accomplished by collaborating with the Company’s exceptional management team, to invest in organic growth and technology, and execute strategic M&A. The HPC team’s commitment to integrity, sustainability, and safety have been the foundation for great customer relationships for the past three decades, and we wish them continued success as part of Clean Harbors.”

Brad Clark, President and CEO of HydroChemPSC, added, “Littlejohn is an experienced, hands-on investor and has been an invaluable partner in supporting HPC and positioning us to execute on our strategy. Their operational expertise has been instrumental as we transformed the business, invested in technology and innovation designed to enhance the customer experience, productivity and safety, and extended our leadership. We look forward to our next chapter under Clean Harbor’s ownership, which will provide a meaningful benefit to our customers while enriching career opportunities for HPC employees.”

Brian Michaud, a Managing Director at Littlejohn, concluded, “HPC’s success over our ownership period is a testament to the exceptional leadership provided by CEO Brad Clark, CFO Judy Shields and the dedication of the nearly 5,000 associates who deliver world class service to HPC’s customers every day.”

The acquisition, which is subject to regulatory approval and other customary closing conditions, is expected to close in 2021.

Moelis & Company is serving as financial advisor to HydroChemPSC and Troutman Pepper Hamilton Sanders is serving as its legal counsel.

About Littlejohn & Co., LLC
Littlejohn & Co. is a Greenwich, Connecticut-based investment firm focused on private equity and debt investments primarily in middle market companies. With approximately $14 billion in regulatory assets under management, the firm seeks to build sustainable success for its portfolio companies through a disciplined approach to engineering change. For more information about Littlejohn, visit www.littlejohnllc.com.