J.F. Lehman & Company

Houlihan Lokey is pleased to announce that J.F. Lehman & Company (JFL) has acquired Heritage-Crystal Clean, Inc. (NASDAQ:HCCI) (Crystal Clean) in an all-cash transaction for $45.50 per share, representing an enterprise value of approximately $1.2 billion. The transaction closed on October 17, 2023.

Crystal Clean provides parts cleaning, used oil re-refining, hazardous and nonhazardous waste disposal, emergency and spill response, and industrial and field services to vehicle maintenance businesses, manufacturers, and other industrial businesses, as well as utilities and governmental entities. Crystal Clean’s service programs include parts cleaning, regulated containerized and bulk waste management, used oil collection and re-refining, wastewater vacuum, emergency and spill response, industrial and field services, waste antifreeze collection, recycling, and product sales. These services help its customers manage their used chemicals and liquid and solid wastes while also helping to minimize their regulatory burdens. Through its used oil re-refining program during fiscal 2022, Crystal Clean recycled approximately 66 million gallons of used oil into high-quality lubricating base oil and acted as a supplier to firms that produce and market finished lubricants. Through its antifreeze program during fiscal 2022, Crystal Clean recycled approximately 4.5 million gallons of spent antifreeze, which was used to produce a full line of virgin-quality antifreeze products. Through its parts-cleaning program during fiscal 2022, Crystal Clean recycled 2.3 million gallons of used solvent into virgin-quality solvent to be used again by customers. In addition, Crystal Clean sold 600,000 gallons of used solvent into the reuse market. Through its containerized waste program during fiscal 2022, Crystal Clean collected approximately 22,000 tons of regulated waste sent for energy recovery. Through its wastewater vacuum services program during fiscal 2022, Crystal Clean treated approximately 84 million gallons of wastewater. Crystal Clean is headquartered in Hoffman Estates, Illinois, and operates through 105 branch and industrial services locations, serving approximately 104,000 customer locations.

JFL is a leading private equity investment firm focused on the aerospace, defense, maritime, and environmental sectors. This investment strategy reflects the firm’s deep experience in and commitment to these sectors since the firm’s founding three decades ago. Headquartered in New York, New York, the firm currently has approximately $4.5 billion of assets under management.

Houlihan Lokey served as the lead financial advisor to JFL and assisted in structuring, valuing, and negotiating the transaction on behalf of JFL.

This transaction highlights Houlihan Lokey’s preeminent position and continued success advising both buyers and sellers in complex, public company transactions in the environmental and industrial services sector, including the following:

• Go-Private Transactions: The sales of Charah Solutions to SER Capital and Covanta to EQT Infrastructure and the acquisition by New Mountain Capital of Aegion.

• Public-to-Public Mergers: The sale of US Ecology to Republic Services and the acquisition by US Ecology of NRCG.

• Public Company Divestitures: Vertex Energy’s divestiture of Heartland Used Motor Oil Collections and Refining assets to GFL Environmental and Charah Solutions’ divestiture of its Allied Power division to Bernhard Capital Partners.

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