Benzinga | Jan 25, 2022 08:38AM EST

Clean Harbors And Vertex Energy Mutually Agree To Terminate Planned Acquisition Of Used Motor Oil Collection And Re-Refining Assets; Vertex Will Pay Clean Harbors A Breakup Fee Of $3M

Clean Harbors, Inc. ("Clean Harbors") (NYSE:CLH), the leading provider of environmental and industrial services throughout North America, today announced that it has mutually agreed with Vertex Energy, Inc. ("Vertex") to terminate Clean Harbors' planned acquisition of Vertex's used motor oil (UMO) collection and re-refinery assets. In June, Clean Harbors agreed to acquire certain assets related to Vertex's UMO collection and re-refinery business in an all-cash transaction for $140 million. The transaction, which was subject to approval by U.S. regulators, had received a request for additional information and documentary materials (second request) from the Federal Trade Commission (FTC) in September.

"Clean Harbors and Vertex have mutually agreed to terminate the transaction," said Alan S. McKim, Chairman and Chief Executive Officer of Clean Harbors. "We can now refocus our energy on other ways to deploy our capital, including continuing to invest in our Safety-Kleen Sustainability Solutions segment."

Under the terms of the acquisition agreement, either party could walk away unencumbered from the transaction if it was not finalized by March 31, 2022. In connection with the early termination of the acquisition agreement, Vertex is paying Clean Harbors a breakup fee of $3 million.