HCCI - Heritage-Crystal Clean agrees to be sold to J.F. Lehman for $1.2B

2023-07-19 16:57:41 ET

Heritage-Crystal Clean ( NASDAQ: HCCI ) agreed to be sold to private equity firm J.F. Lehman & Co. for about $1.2 billion in cash.

Under the terms of the deal, J.F. Lehman will acquire cleaning services company Crystal Clean ( HCCI ) for $45.50, according to a statement . The price represents a premium of 8.5% to HCCI's closing price on Wednesday.

The deal is expected to close in Q4, subject to approvals. Fully committed debt financing in support of the transaction is being provided by Jefferies Finance LLC and Sumitomo Mitsui Banking Corp. The acquisition is not subject to any financing conditions.

The deal agreement includes a 35-day "go-shop" period, during which Crystal Clean and its board can solicit other takeover offers for the company.

The Heritage Group and its affiliates, which collectively hold 26.70% of the Crystal Clean common shares, and Brian Recatto, who holds 3.23% of HCCI shares, have each entered into a voting and support agreement to vote all of their HCCI common shares in favor of the transaction.

William Blair is serving as a financial advisor to Crystal Clean ( HCCI ). Houlihan Lokey is serving as the lead financial advisor to JFLCO, and Jefferies is also serving as a financial advisor to JFLCO.

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