Clean Harbors Buys Safety-Kleen
Clean Harbors Inc., a provider of environmental, energy and industrial services throughout North America, has acquired Safety-Kleen Inc., a provider of parts cleaning and environmental services and the largest re-refiner and recycler of used oil in North America.
Clean Harbors purchased Safety-Kleen in an all-cash transaction valued at about $1.25 billion. The acquisition was financed through the combination of $289 million of existing cash, $370 million in net proceeds from a recently completed follow-on offering of common stock and $591 million in net proceeds from a recently completed offering.
The purchase forms part of Clean Harbors’ strategy of widening its environmental services business in North America. Clean Harbors expects the transaction to drive a “substantial increase” in waste volumes into its waste disposal treatment network.
For 2013, Clean Harbors expects that on a combined basis with Safety-Kleen, it will have revenues in the range of $3.72 billion to $3.77 billion. The Company expects its combined 2013 adjusted earnings before interest, taxes, depreciation and amortization to be in the range of $605 million to $620 million.
In September, Virginia International Raceway announced that it had selected Safety-Kleen’s EcoPower engine oil for use in all track support vehicles, in an effort to support environmentally responsible racing. Safety-Kleen began offering re-refined oil to consumers under the brand name EcoPower in 2009.
In April last year, the EPA and Clean Harbors of Braintree in Braintree, Mass., entered into a revised settlement of hazardous waste violations, in which the Clean Harbors entity agreed to pay at least $450,000.
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