September 13, 2010 / 12:36 PM / 8 years ago

UPDATE 1-Marsulex to sell Stablex unit to US Ecology Inc

* Deal valued at C$80 mln

* Expected to close Oct 31

* Marsulex to use proceeds to pay back debt

* US Ecology says deal to add to earnings in 2011

Sept 13 (Reuters) - Canada’s Marsulex Inc MLX.TO said it agreed to sell its Stablex division, a provider of hazardous waste services, to US Ecology Inc (ECOL.O) for C$80 million in order to pay back outstanding debt.

The Toronto-based provider of environmental compliance solutions said the transaction is expected to close on Oct 31.

In a separate release, US Ecology said, while the acquisition is expected to contribute “solidly” to earnings in 2011 and beyond, it expects to recognize a non-recurring cost associated with the acquisition of about 7 cents a share in 2010.

The waste management and recycling services provider said its 2010 forecast remained unchanged.

The Stablex facility principally serves the eastern Canadian and northeastern U.S. industrial markets and employs about 150 people. In 2009, Stablex’s revenue was C$38.5 million.

Boise, Idaho-based US Ecology also added that the purchase is being funded through a combination of cash on hand and borrowings under a $75 million revolving acquisition credit facility.

Marsulex shares, which have gained 16 percent after touching a 52-week low last September, closed at C$11.25 Friday on the Toronto Stock Exchange. US Ecology shares, which have gained 2 percent since touching a 52-week low in August, closed at $13.20 Friday on Nasdaq. (Reporting by Isheeta Sanghi in Bangalore; Editing by Vyas Mohan)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below