Heritage-Crystal Clean, Inc., a leading provider of parts cleaning, used oil re-refining, and hazardous and non-hazardous waste services primarily focused on small and mid-sized customers, last Thursday announced its subsidiary Heritage – Crystal Clean, LLC has acquired FCC Environmental, an environmental services provider and a significant collector of used oil in the United States, for total consideration of $90 million. The business was purchased from Fomento de Construcciones y Contratas S.A. ("FCC"), based in Madrid, Spain.

Mr. Joseph Chalhoub, Founder, President, and Chief Executive Officer of Heritage-Crystal Clean, Inc. commented: "We are very pleased to be adding FCC Environmental's personnel to our team and their assets to our organization. FCC Environmental, with sales of approximately $160 million during fiscal 2013, operates 34 facilities in the eastern half of the United States. This acquisition will allow us to quickly improve the overall efficiency of our used oil collection fleet and to substantially expand the Environmental Services segment of our company. We are also excited to have the opportunity to service FCC Environmental's approximately 30,000 customers. Based on the historical performance of the business, the Company expects the transaction will result in additional used oil volume for the Company of approximately 54 million gallons per year."

FCC Environmental's other service offerings are complementary to those of Heritage-Crystal Clean and include oily water disposal, vacuum services, parts cleaning services, used antifreeze collection and recycling, used oil filter collection and recycling and other environmental field services.

Mr. Mark DeVita, Chief Financial Officer of HCCI added: "This transaction is our largest acquisition to date, and we expect it to be accretive in fiscal 2015. The transaction provides us the opportunity to capture significant synergies which we estimate will be approximately $20 million annually once the integration is complete. We expect to complete the integration within approximately one year. The consideration for the acquisition is all cash and the transaction is being financed through borrowings under our credit facility, which was amended in connection with the acquisition so that we can borrow up to $140 million."