Woodcliff Lake, NJ – June 7, 2024 – Hudson Technologies, Inc. (NASDAQ: HDSN) today announced the acquisition of substantially all of the assets of USA United Suppliers of America, Inc. d/b/a USA Refrigerants (“USA”) for $20.7 million, subject to customary post-closing adjustments, and up to an additional $2 million in potential earnout payments. USA is a national refrigerant distributor and has been a leading purchaser of recovered refrigerants for over 25 years.
Brian F. Coleman, President and Chief Executive Officer of Hudson commented, “We have known USA for many years, and they have built a highly respected reputation in our industry based on their expertise in refrigerant recovery, as well as their strong sales organization, and high level of service and commitment. With the addition of the USA team, Hudson will create a dedicated refrigerant acquisition group focused on acquiring all types of refrigerants from CFCs to HFCs and the latest generation products.
“The combination of USA’s proven success and long-term relationships working with ACCA members and other industry groups purchasing recovered refrigerants and providing the buying team access to Hudson’s customer base is expected to significantly enhance our purchasing abilities of all recovered refrigerants. In addition, we expect to leverage their existing customer base, whose purchasing activity has resulted in USA generating average revenues of approximately $20 million per year over the last three years. Furthermore, the valuation of this strategic acquisition is in line with our purchase price valuation target of 6X EBITDA. We are excited about the potential of this acquisition to help scale our capabilities related to sourcing recovered and reclaimed refrigerants, enabling us to drive increased sales of these higher margin refrigerants as current and future phase downs of virgin refrigerants create supply/demand imbalance in the marketplace.”
Ted Broudy, President of USA commented, “Hudson is the right home for our business. With their additional resources and expertise in field service, recovery, and reclamation, our USA customers will continue to receive the excellent level of care and attention we have always provided, and the opportunity to combine our capabilities with Hudson’s will allow us to expand our expertise and service to a broader customer base. We look forward to joining Hudson and establishing a new team dedicated to rapidly growing refrigerant acquisition and reclaim sales.”