Heckmann Gets Thermo Fluids


Heckmann Corp. will acquire used motor oil collector Thermo Fluids Inc. from private equity firm CIVC Partners for $245 million in cash and stock shares.

The acquisition is expected to close early in the second quarter, subject to closing conditions.

Scottsdale, Ariz.-based Thermo Fluids has operations throughout the western United States, with facilities and customers in 18 states. The company has 31 facilities, 290 trucks, more than 190 rail cars and more than 230 employees.

Thermo Fluids collects and purchases used motor oil from a large number of companies across many industries, including quick lubes, auto dealerships, mining operations and industrial companies. It also provides environmental services, including oily wastewater collection and processing, spent antifreeze collection and recycling, and used oil filter collection and disposal. Customers include Walmart, Penske, Jiffy Lube, Halliburton, Peadbody Energy and ConocoPhillips.

The company converts the used motor oil into reprocessed fuel oil, using a proprietary filtration process to remove impurities. Thermo Fluids also sells the reprocessed fuel oil to industrial customers. The reprocessed fuel oil is increasingly sold to rerefiners as a critical feedstock for the production of rerefined base oil, the company said in a statement. In 2011, Thermo Fluids processed and sold about 54 million gallons of reprocessed fuel oil to more than 250 customers.

The acquisition will extend Heckmanns oil industry offering to include services for virgin and reprocessed oil. We expect approximately 31 percent of our revenues in 2012 to come from recovered and reprocessed used oil and other environmental services from Thermo Fluids, said Richard Heckmann, chairman and CEO of Heckman, of Coraopolis, Pa.

Both [Thermo Fluids] and Heckmann are in growth modes, and our services complement and expand on Heckmanns water solutions offering for the oil and gas industry, Thermo Fluids CEO James Devlin said.

Heckmann operates multi-modal water disposal, treatment, trucking, and pipeline transportation businesses in Texas, Louisiana, Pennsylvania, West Virginia, and Ohio.

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