NORWELL, Mass. (Jan. 2, 2013) — Environmental services company Clean Harbors Inc. has completed its purchase of used-oil-recycler Safety-Kleen Systems Inc. in a $1.25 billion deal.
Norwell-based Clean Harbors said it had financed the cash deal with $289 million of existing cash, $370 million in net proceeds from its recently completed offering of common stock and $591 million in net proceeds from its recently completed offering of senior notes.
"The acquisition of Safety-Kleen aligns perfectly with our strategy of expanding our environmental services business in North America," said Clean Harbors Chairman and CEO Alan S. McKim. "Safety-Kleen brings well-established leadership positions in several important markets, including parts cleaning, small quantity waste generators and used oil recycling. We expect the transaction to drive a substantial increase in waste volumes into our waste disposal treatment network."
This year, Safety-Kleen is expecting sales of $1.35 billion and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of about $160 million, according to the news release.
With Safety-Kleen in the fold, Clean Harbors said it expects 2013 revenues of $3.72 billion to $3.77 billion and adjusted EBITDA to be in the range of $605 million to $620 million.
Safety-Kleen managed hazardous and nonhazardous waste volumes equivalent to approximately 680,000 55-gallon drums in 2011, the company said when the deal was announced in late October. At that time, Clean Harbors said it intended to keep the Safety-Kleen brand and operate its locations as a subsidiary.
This article recently appeared on the website of Waste & Recycling News, a Detroit-based companion publication of Tire Business.