Clean Harbors Inc. has agreed to buy used oil recycling firm Safety-Kleen Inc. for about $1.25 billion.
The Norwell, Mass.-based Clean Harbors said in a news release that Safety-Kleen, of Richardson, Texas, is the largest waste collector from the small quantity generator market and the largest refiner and recycler of used oil in North America.
Clean Harbors said the deal will allow the company to penetrate the small quantity generator market; broaden its capabilities into re-refining waste oil and expanded solvent recycling capabilities; increase waste volumes into its existing waste disposal network; and enhance its commitment to sustainability, among other factors.
The purchase of Safety-Kleen “aligns perfectly with our acquisition strategy of expanding our Environmental Services business in North America,” said Alan McKim, chairman and CEO of Clean Harbors. “Adding Safety-Kleen’s re-refining and recycling capabilities to our current offerings will enhance the sustainability options available to our existing customers and significantly broaden the range of services we can offer customers of both companies.”
With more than 200 locations throughout North America, Safety-Kleen services commercial and industrial customers in the U.S., Canada and Puerto Rico. 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 expects the transaction to be complete by the end of the year. The company purchased Safety-Kleen’s Chemical Services Division a decade ago.
Clean Harbors ranks No.3 on the Waste Age 100 with 2011 revenue of $1.88 billion.