Clean Harbors – CLH – To Acquire Safety-Kleen

NYSE:CLH), the leading provider of environmental, energy and industrial services throughout North America, announced it has signed a definitive agreement to acquire Safety-Kleen, Inc. (“Safety-Kleen”), the largest re-refiner and recycler of used oil in North America and a leading provider of parts cleaning and environmental services. Under the terms of the agreement, Clean Harbors will purchase Safety-Kleen in an all-cash transaction valued at $1.25 billion. The acquisition is subject to approval by U.S. and Canadian regulators, as well as other customary closing conditions. The transaction is expected to be completed by year-end.

Based on the current operating and anticipated future performance of Safety-Kleen, Clean Harbors expects the acquisition will be immediately accretive, excluding one-time fees and acquisition-related expenses. The Company has received a financing commitment from Goldman Sachs Bank USA, but is currently considering several financing options for the transaction that may include a combination of existing cash, debt and equity.

The transaction will enable Clean Harbors (CLH) to:

• Penetrate the small quantity waste generator market
• Broaden its waste treatment capabilities to include re-refining waste oil and expanded solvent recycling capabilities
• Drive substantial increase in waste volumes into its existing waste disposal treatment network
• Capitalize on the growing demand for recycled products including re-refined oil
• Enhance its commitment to sustainability
• Leverage the combined sales forces to maximize cross-selling opportunities
• Add an immediately accretive business to accelerate growth
• Leverage operating efficiencies through the combined company
• Add to its strong cash flow generation

“This acquisition is a landmark achievement for Clean Harbors that we believe will build significant long-term value for our shareholders,” said Alan S. McKim, Chairman and Chief Executive Officer. “Safety-Kleen is a recognized leader in the environmental services field with a corporate heritage that dates back nearly 50 years with a strong service culture. We have the benefit of a long and positive relationship with Safety-Kleen as a result of our acquisition of its Chemical Services Division a decade ago. Safety-Kleen has been a large customer of our environmental services business. The addition of its entire organization aligns perfectly with our acquisition strategy of expanding our Environmental Services business in North America. Safety-Kleen is the largest collector of waste from the small quantity generator market and the leader in re-refining used oil in North America.”

About Safety-Kleen

Safety-Kleen is a leading North American used oil recycling and re-refining, parts cleaning and environmental solutions company, with approximately 4,200 employees serving more than 200,000 customer locations in the United States, Canada and Puerto Rico. Safety-Kleen provides a broad set of environmentally-responsible products and services that keep North American businesses in balance with the environment. Safety-Kleen is owned by a group of investors including Highland Capital Management, L.P. of Dallas, Texas, its largest investor.

About Clean Harbors – CLH

Clean Harbors (CLH) is the leading provider of environmental, energy and industrial services throughout North America. CLH serves more than 60,000 customers, including a majority of the Fortune 500 companies, thousands of smaller private entities and numerous federal, state, provincial and local governmental agencies.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.