Heckmann Corp has completed the previously announced acquisition of TFI Holdings and Thermo Fluids (collectively TFI) to expand the company's environmental solutions offering.
TFI is a route-based environmental services and waste recycling solutions firm that focuses primarily on the collection and recycling of used motor oil (UMO).
The acquisition TFI extends Heckmann’s single-source environmental solutions offering for the oil and gas industries, beyond water services solutions.
The new business unit will be called Heckmann Environmental Services (HES), and will house collection and recycling services of waste products, including used motor oil, wastewater, spent antifreeze, remanufactured antifreeze sales, used oil filters and parts washers.
Heckmann chairman and chief executive officer Richard Heckmann said three years ago, the company established a business model for environmental service solutions, and the acquisition of the largest seller of preprocessed fuel oil from recovered UMO, in the Western US represents its next phase of growth.
"We can now provide more comprehensive service offerings among the environmental services spectrum," Heckmann said.
"HES augments our proven capabilities in water and wastewater services by diversifying our operations, revenue stream, geographic reach and customer base, while accelerating our top-line growth and providing us with significant free operating cash flow."
In connection with the acquisition, Heckmann paid about $227.5m in cash from a previously announced senior notes offering and $17.5m in restricted shares of Heckmann common stock.