Clean Harbors buys competitor for $1.25 billion
by CanadianManufacturing.com Staff
Acquisition target Safety-Kleen services more than 200,000 customer locations across North America
NORWELL, Mass.—Environmental, energy and industrial services firm Clean Harbors, Inc. has acquired Safety-Kleen, Inc., the largest re-refiner and recycler of used oil in North America.
The all-cash deal is valued at about $1.25 billion and was financed through a combination of existing cash and stock proceeds.
“Safety-Kleen brings well-established leadership positions in several important markets, including parts cleaning, small quantity waste generators and used oil recycling,” said Alan S. McKim, Chairman and Chief Executive Officer. “We expect the transaction to drive a substantial increase in waste volumes into our waste disposal treatment network.”
Safety-Kleen services more than 200,000 customer locations across North America, a market Clean Harbors will focus on for substantial cross-selling efforts.
For 2012, Safety-Kleen expects revenues of approximately $1.35 billion and adjusted EBITDA of approximately $160 million. 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 and combined 2013 adjusted EBITDA of $605 million to $620 million, including approximately $30 million of acquisition-related synergies.
Headquartered in Massachusetts, Clean Harbors provides of environmental, energy and industrial services throughout North America. Its Canadian headquarters is located in Thorold, Ont.
Safety-Kleen handles oil remediation and waste handling, as well as parts cleaning and environmental services with Canadian headquarters in Brampton, Ont.