Swisher Hygiene, a leading provider of essential hygiene and sanitation products and services, announced that it has completed the sale of its Choice Environmental Services subsidiary. The sale was made to Waste Services of Florida, a subsidiary of Progressive Waste Solutions, for approximately $123.3 million in cash; however, the purchase price can be increased by up to $1.75 million upon achievement of a predetermined revenue target and is also subject to customary purchase price adjustments, including revenue and EBITDA metrics. Ten percent of the purchase price is subject to a holdback and adjustment upon the delivery of audited financial statements to the buyer.
Swisher Hygiene will pay off its Wells Fargo credit facility for $17.2 million, and equipment leases associated with the operations of Choice totaling $13.2 million and an outstanding note in the amount of $2 million. This will improve Swisher Hygiene's bottom line and remaining debt will be approximately $13 million, consisting primarily of seller notes.
"We have been pleased with the operations of our Choice subsidiary over the past year and a half and we will miss having the Choice team as a part of the Swisher Hygiene family," said Thomas Byrne, Interim President and Chief Executive Officer of Swisher Hygiene. "However, during this period we determined that we could provide our customers with the same benefits through a less capital intensive, more cost-effective approach by partnering with other service providers to cross-sell waste services on a national scale. In the meantime, we remain dedicated to serving our customers nationwide on a day-to-day basis with our comprehensive core chemical program as well as our complementary hygiene and sanitation services."
Choice offers a complete range of solid waste and recycling collection, transportation, processing, and disposal services. The company operates six hauling operations, three transfer and materials recovery facilities, and annually processes more than 150,000 tons of material. Choice has been in business since 2004 and serves more than 150,000 residential and 7,500 commercial customers in the Southeastern, Southwestern, and Central Florida regions. The company has 320 employees and over 150 collection vehicles.
For more information, visit swisherhygiene.com
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