Clean Earth is a provider of environmental services including de-characterization, remediation, disposal, recycling, and beneficial reuse for hazardous and non-hazardous wastes, contaminated soil, wastewater and dredged material. Clean Earth serves a variety of industries including infrastructure, chemical, utilities, industrial, commercial, retail, and healthcare markets.

Date of Acquisition

Aug 2014

Purchase Price

$251M

Years Held

5

sale price

$625M

“CODI has been an ideal partner, providing hands-on support, outstanding guidance and growth capital to enable Clean Earth to best take advantage of attractive opportunities. I would like to thank CODI for their patient approach and commitment to invest in our business, driving growth and further strengthening Clean Earth’s brand, industry leadership and financial performance. The momentum that they helped create will provide us with a strong platform for the future.”

Chris Dods

CEO of Clean Earth

Competitive Strengths

Market share leader

Significant portfolio of regulatory permits, processing knowledge and equipment

Benefits from strengthening and enforcement of environmental regulation

Increasing waste disposal costs and landfill avoidance trends

Strong management team; average tenure of approximately 10 years

Value Creation

Worked with management to execute an aggressive add-on acquisition strategy, repositioning the company’s end markets and customer base while broadening its facility footprint and permit portfolio.

Completed accretive add-ons of seven environmental services providers, representing approximately $100 million of annual revenue and expanding the Company’s footprint from 12 to 27 fixed facilities across the United States

  • Transformed revenue mix from primarily soil to majority hazardous waste treatment, which is higher margin, more programmatic and less indexed to macroeconomic fluctuations
  • Shifted contaminated materials end markets from primarily commercial to majority infrastructure
  • Developed advanced reporting and analytical systems to manage operational integration and track performance of the add-ons

Successfully targeted fragmented hazardous waste treatment market, acquiring 8 valuable RCRA Part B permits to expand processing capacity and capabilities (no new commercial Part B permits issued in over 30 years)

Deployed capital through proprietary transactions at accretive valuations in a high-multiple environment

Divestiture

In June 2019, CODI completed the 100% sale of Clean Earth to Harsco Corporation (NYSE: HSC) for $625 million.