Clean Harbors Prices $600 Million Notes to Fund Two Acquisitions

Clean Harbors priced $600 million of senior notes at a 6.25% interest rate, with repayment due in 2034. The company plans to use the proceeds for its EnviroServe purchase and to repay credit-line borrowing used for the ES&H deal.

The private sale is expected to close around October 1, subject to customary conditions. At the stated rate, the notes imply about $37.5 million in annual interest before fees.

EnviroServe is expected to cost $470 million in cash. Clean Harbors said the target has 40 locations, about $250 million in annual revenue and roughly $27 million in adjusted EBITDA.

The company expects about $25 million in cost savings over the first two years. It has said the deal should close in the second half of 2026, pending regulatory approval and other customary conditions.

The other transaction is ES&H, a $305 million cash acquisition announced in July. Clean Harbors plans to use part of the note proceeds to repay revolving-credit borrowings used to help fund that purchase.

The notes add to an existing debt stack that, at June 30, included $1.3 billion in term loans and $1.545 billion in senior notes. Clean Harbors also reported $516.7 million in cash and marketable securities at that date.

Operating performance provides some capacity to absorb the added interest: second-quarter revenue rose 12% year over year to $1.74 billion, while net income climbed 34% to $170.5 million. The company forecast full-year adjusted EBITDA of $1.35 billion to $1.41 billion.

The key test is whether both deals close and deliver their expected benefits. Clean Harbors said the notes sale is not conditional on either acquisition; if a deal does not close, proceeds can go to general corporate purposes instead.