Compass Buys Soil Recycling Firm Clean Earth

Compass Diversified Holdings has acquired soil and dredge recycling firm Clean Earth Inc.

The Westport, Conn.-based Compass acquired the Hatboro, Pa.-based Clean Earth from Littlejohn & Co. LLC, a private investment firm based in Greenwich, Conn. The purchase price will be based on a total enterprise value of $243 million and include cash and working capital adjustments upon closing, which is expected by the end of August, Compass said in a news release.

Clean Earth analyzes, treats, documents and recycles a variety of contaminated materials including soils, dredged material, hazardous waste and drill cuttings. Before the company accepts contaminated materials, it identifies a third-party beneficially reuse site such as commercial redevelopment or landfill capping where the materials will be sent after they are treated.

In 2013, Clean Earth managed and treated 3.4 million tons of material, of which 98 percent was beneficially reused. The company operates 12 permitted facilities in the eastern United States, and in 2013 posted revenue of about $155.9 million. Clean Earth generated about $32 million of earnings before interest, taxes, depreciation and amortization (EBITDA) for the last twelve months ending June 30.

“The company's stellar environmental and safety track record has enabled Clean Earth to build a premier reputation in the specialty waste industry,” said Alan Offenberg, CEO of Compass. “We intend to drive future performance by leveraging the company's market leadership and scalable infrastructure. We also plan to expand into new markets both organically and through strategic add-on acquisitions."

Chris Dods, Clean Earth CEO, will continue to serve in the same capacity at the company. Compass manages a diverse range of middle market businesses.