Business
Quest Resource Holding Corporation Acquires Two Asset-Light Waste Services Companies
Expands presence in industrial and commercial property management end markets Combined transactions increase net income and adjusted EBITDA by more than 50%
About this update from Quest Resource Holding Corporation
[{"type":"text","content":"Expands presence in industrial and commercial property management end markets Combined transactions increase net income and adjusted EBITDA by more than 50% annually THE COLONY, Texas, Dec. 08, 2021 (GLOBE NEWSWIRE) -- Quest Resource Holding Corporation (Nasdaq: QRHC) (\"Quest\"), a national leader in environmental waste and recycling services, announced today that it has acquired two national asset-light waste and environmental services businesses: Chadds Ford, PA-based, RWS Facility Services, LLC (“RWS”), and Greenville, SC-based, InStream Environmental, LLC (“InStream”). RWS and Instream will expand Quest’s presence in the commercial property space and meaningfully add to our industrial market customer base. “These transactions are estimated to increase our annual revenue, net income, and adjusted EBITDA by more than 50%, adding significant scale as well as customer diversification,” said Quest President and Chief Executive Officer S. Ray Hatch. “Like Quest, RWS and InStream both have a reputation for providing exceptional service and building strong customer loyalty. With the increased scale and scope of our combined businesses, we are well positioned to maintain strong customer relationships and provide more services for existing and prospective customers,” Hatch added. The Company agreed to acquire the membership interests of RWS for a total consideration of $33.0 million in cash. The Company agreed to acquire the assets of InStream for a total consideration of $11.0 million (and an additional $1.5 million of consideration which may be earned based on future performance). The combined transaction price of approximately $44 million is estimated to add more than $80 million of revenue, approximately $2.2 million in net income, and $5.5 million in adjusted EBITDA. The transactions are expected to be accretive on a free cash flow per share basis. “Quest is committed to growing long-term shareholder value and to supporting our customers’ sustainability goals,” Dan Friedberg, Quest’s Board Chairman added. “Our strategy is to grow by expanding services to existing customers, organically adding to our customer base, and by acquiring businesses like RWS and InStream whose customers can be better served on the Quest platform. We are focused on building scale and scope to our national platform, bringing value by lowering the costs to...