#USA #logistics #Tampa #Depot Connect #Clean Harbors

Depot Connect International's Strategic Move to Optimize Portfolio

Depot Connect International (DCI), a leading provider of essential services in the transportation sector, has announced a significant business move. The company has finalized a definitive agreement to sell its industrial and rail service operations to Clean Harbors, a North American leader in environmental and industrial services. This transaction, valued at approximately $130 million, marks a pivotal point in DCI's strategy to streamline its operations and focus on its core business areas.

The Transaction Details

The sale involves five strategically located sites across Ohio, Louisiana, and Texas. DCI anticipates completing the transaction during the first half of 2026, pending the usual closing conditions. Chris Synek, CEO of Depot Connect International, expressed his enthusiasm about the agreement, stating that it allows DCI to move forward with a more streamlined portfolio. He emphasized that divesting these non-core assets enables the company to reinvest in its primary operational functions, enhance its top-tier depot network, and improve specialized services critical to its clients.

A Continued Collaboration

Despite this sale, DCI and Clean Harbors will maintain a collaborative relationship post-transaction. DCI plans to share facilities with Clean Harbors in key locations in Baton Rouge, Louisiana, and Pasadena, Texas. DCI will continue to serve as the exclusive provider of cleaning and maintenance services for tank trucks in these areas, highlighting the ongoing partnership between the two companies. Moreover, both organizations are dedicated to facilitating a smooth transition for their valued customers throughout the process.

Strategic Focus on Core Operations

By shifting its focus to its primary strengths, DCI is committed to driving innovation and operational excellence across its North American and European footprints. This strategic move signals DCI's intention to be more agile and better equipped to adapt to the ever-evolving needs of the transportation and logistics sector. The company is adamant about ensuring that it can deliver the best services and solutions possible, supporting its clients in navigating the complexities of modern supply chain management.

Support from Legal and Financial Advisors

In preparation for this significant transition, Depot Connect International has received expert guidance from Simpson Thacher & Bartlett LLP as its legal advisor and Stifel as its financial advisor. This support has been crucial in navigating the intricacies of such a major asset transfer.

About Depot Connect International

Depot Connect International specializes in essential services for the transportation sector, focusing on tank truck cleaning and container solutions. With an extensive network of strategically located facilities, DCI provides critical infrastructure necessary for the operational efficiency and safety of the global supply chain.

About Clean Harbors

Clean Harbors (NYSE: CLH) is recognized as North America's largest provider of environmental and industrial services. The firm caters to a diverse client base, including many Fortune 500 companies, with annual revenues nearing $6 billion. Clean Harbors offers a wide range of services, such as hazardous waste management, emergency spill response, and industrial cleaning.

In closing, the transaction between Depot Connect International and Clean Harbors showcases a significant strategic development within the transportation and environmental services sectors, ultimately benefiting the efficiency and responsiveness of both firms and enhancing the services provided to an array of clients.