Allan Gerlat, News Editor

January 2, 2013

1 Min Read
Clean Harbors Completes Acquisition of Safety-Kleen

Clean Harbors Inc. has completed its purchase of used oil recycling firm Safety-Kleen Inc., which it agreed to buy in late October.

The Norwell, Mass.-based Clean Harbors said in a news release the company will finance the all-cash transaction valued at $1.25 billion through the combination of $289 million of existing cash, $370 million in net proceeds from its recently completed follow-on offering of common stock and $591 million in net proceeds from its recently completed senior notes offering.

“The acquisition of Safety-Kleen aligns perfectly with our strategy of expanding our Environmental Services business in North America,” said Alan McKim, chairman and CEO.

Safety-Kleen, based in Richardson, Texas, has strong market positions with used oil recycling, small quantity waste generators and parts cleaning. The company expects the deal to substantially increase its waste volumes for its waste disposal treatment network.

For 2013, Clean Harbors expects that combined 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 (EBITDA) to be in the range of $605 million to $620 million, including approximately $30 million of acquisition-related synergies.

Safety-Kleen services commercial and industrial customers in the U.S., Canada and Puerto Rico with more than 200 locations. It has approximately 4,200 employees and operates a fleet of more than 2,300 vehicles and 1,000 rail cars. In 2011 Safety-Kleen generated revenues of about $1.3 billion and managed hazardous and non-hazardous waste volumes equivalent to approximately 680,000 55-gallon drums.

Clean Harbors ranks No.3 on the Waste Age 100 with 2011 revenue of $1.88 billion.

The company purchased Safety-Kleen’s Chemical Services Division a decade ago.

 

 

About the Author(s)

Allan Gerlat

News Editor, Waste360

Allan Gerlat joined the Waste360 staff in September 2011 as news editor. He was the editor of Waste & Recycling News for the first 16 years of its history, and under his guidance the publication won 27 national and regional awards.

Before Waste & Recycling News, Allan worked at another Crain Communications publication, Rubber & Plastics News, which covers rubber product manufacturing. He began with the publication as associate editor and eventually became managing editor, a position he held for nine years.

Allan is a graduate of Ohio University, where he earned a BS in journalism. He is based in Sagamore Hills, in northeast Ohio.

Stay in the Know - Subscribe to Our Newsletters
Join a network of more than 90,000 waste and recycling industry professionals. Get the latest news and insights straight to your inbox. Free.

You May Also Like