Clean Harbors Invests $55M in California Hub, Announces CEO Transition
The Los Angeles-area facility will consolidate six operations, while Eric Gerstenberg prepares to become sole CEO in January 2027.
MONTREAL (RecyclingMonster): Clean Harbors is investing $55 million in a new operational hub in the Los Angeles area as part of its facility consolidation strategy. The announcement coincides with plans for co-CEO Mike Battles to retire, leaving Eric Gerstenberg as sole CEO in 2027.
The company has acquired a site that will consolidate operations currently spread across six facilities. Although the exact location has not been disclosed, Clean Harbors expects annual lease savings of $5 million to $7 million.
California Hub to Expand Environmental Services
The consolidated facility is expected to create opportunities to expand wastewater treatment, electronic waste recycling and other environmental services in Southern California.
The investment exceeds Clean Harbors' earlier hub projects in Baltimore and Phoenix, which cost $20 million and $15 million, respectively.
Gerstenberg to Become Sole CEO as Q3 Earnings Rise
Gerstenberg, who joined Clean Harbors in 1989, has served alongside Battles as co-CEO since March 2023. He will become sole CEO on January 1, 2027, while Battles will serve in a strategic advisory role during 2027.
Clean Harbors also reported strong third-quarter 2026 results. Revenue increased 21% to $1.87 billion, while net income rose 75% to $208.1 million. Adjusted EBITDA climbed 42% to $456.1 million.
The company cited growth in environmental services, including PFAS-related work and hazardous waste management, as contributors to its performance.