Mergers and Acquisitions
Global Giant Veolia Aims $3B Deal to Buy US Waste Firm Clean Earth
Clean Earth Inc. is a major US waste treatment, management and remediation firm that global water-waste management giant Veolia has agreed to buy in an estimated$ $3B cash deal set to close in mid-2026.
France-based water and waste management giant Veolia announced an agreement Nov. 21 to buy U.S. hazardous waste management and remediation contractor Clean Earth Inc. for $3 billion, which the buyer described as “its biggest and most transformative acquisition” since its $15.4-billion purchase in 2021 of water utility company Suez.
The Veolia purchase deal with Clean Earth parent Enviri Corp., Philadelphia, was approved by both firms’ boards, and is set to close by mid-2026.
Veolia said the cash acquisition of the King of Prussia, Pa.-based company would accelerate its U.S. environmental holdings and double its share in domestic waste treatment, management and cleanup, terming it “a fast-growing U.S. sector," and noting Clean Earth's "nationwide operational platform, wider market coverage and an advanced portfolio of technical capabilities.”
Clean Earth last year signed a five-year agreement with Veolia North America for incineration services in Arkansas and also supports waste management at U.S. Defense Dept. facilities.
Clean Earth operates 19 permitted U.S. treatment, storage and disposal sites, as well as several wastewater treatment plants and 10-day hazardous waste transfer facilities, according to Enviri in its most recent annual report. It also provides services related to soil and dredged materials management.
"Over the past five years, Clean Earth revenue increased roughly 30% and its [earnings before interest, taxes, depreciation and amortization] EBITDA more than doubled, EBITDA margins tripled and the business generated over $400 million of free cash flow, Enviri Chairman and CEO F. Nicholas Grasberger told analysts Nov. 21. "The sale price of $3 billion is not only nearly 3x our initial investment, but is also at roughly 18x trailing EBITDA, an unprecedented valuation in the specialty waste sector."
The Clean Earth platform "has weathered a pandemic, extraordinary inflation in key cost categories and a complex and full integration of two acquired businesses to become a market leader in the U.S. specialty waste market," he added. "As you know, this industry has been consolidating, and most view Clean Earth as the most attractive kind of remaining business and collection of assets in this space."
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Enviri would keep full ownership of its U.K-based Harsco Environmental and Charlotte, N.C.-based Harsco Rail services subsidiaries, which are set to be spun off into a standalone publicly traded company.
Clean Earth ranks at No. 33 on ENR’s list of the Top 200 Environmental Firms list, reporting nearly $940 million in 2024 global environmental services revenue, with 96% of that in hazardous waste work and all in the U.S. It also ranks at No. 6 among listed firms that reported only environmental services revenue last year.
Veolia ranks first on the Top 200 list, reporting a total of more than $46 billion in global environmental services revenue.
The transaction "offers strong value creation for shareholders with $120 million" of future synergies, said Veolia. At deal completion, it said company hazardous waste revenue would reach $5.9 billion. Veolia targets net earnings growth of at least 10% in the 2024-2027 range in that sector.
“The hazardous waste treatment sector is particularly robust, especially in the United States, where it is outperforming a challenging economic environment," said Veolia. "It is an essential service for key industries, particularly those undergoing transformation or reshoring production."
The combined companies offer "enhanced logistics and expanded treatment capabilities and technologies, including PFAS treatment and new contaminants," said Veolia. "The purchase also enables [the firm] to further develop its business in underserved geographies like the Southeast and Pacific Northwest.”
