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US Ecology (ECOL) to Divest Non-Core Asset USE Augusta

US Ecology, Inc. ECOL, a renowned North American firm, recently announced the strategic sale of its non-hazardous solid and liquid waste processing unit, USE Augusta, located in Augusta, GA, to Covanta Environmental Solutions. The transaction value, however, has not been disclosed.

Headquartered in Boise, ID, US Ecology was formerly known as American Ecology Corporation. It is a leading provider of environmental services to various commercial and government entities across the U.S. The company primarily operates in two segments – Environmental Services and Field & Industrial Services. It provides services across the U.S., Canada and Mexico.

US Ecology is streamlining its business for better long-term growth opportunities. In order to focus more on its core business activities, the company has decided to divest its non-core assets. The USE Augusta unit is deemed to be part of the company’s non-core business.

USE Augusta did not have much of an impact on the company’s earnings in the last reported quarter, owing to which it decided to restructure its business to curtail expenses. The sale of this unit will not affect the company’s 2016 guidance provided earlier, in which it projected revenues of $502–$528 million and earnings per share between $1.80 and $1.95.

Last August, US Ecology entered into a similar agreement to sell off New Jersey-based Allstate Power-Vac, Inc., another non-core asset, to a private investor group. The deal was worth approximately $58 million.

US Ecology holds a Zacks Rank #2 (Buy). Some other stocks worth looking into include CBIZ, Inc. CBZ, Acacia Research Corporation ACTG and Waste Management, Inc. WM. CBIZ and Acacia Research both sport a Zacks Rank #1 (Strong Buy), while Waste Management carries a Zacks Rank #2 (Buy).

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ACACIA RESEARCH (ACTG): Free Stock Analysis Report
 
WASTE MGMT-NEW (WM): Free Stock Analysis Report
 
US ECOLOGY INC (ECOL): Free Stock Analysis Report
 
CBIZ INC (CBZ): Free Stock Analysis Report
 
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