Clean Harbors, Inc. (“Clean Harbors”) (NYSE: CLH), the leading provider of environmental, energy and industrial services throughout North America, today announced the completion of its acquisition of Safety-Kleen, Inc., a leading provider of parts cleaning and environmental services and the largest re-refiner and recycler of used oil in North America. Clean Harbors purchased Safety-Kleen in an all-cash transaction valued at approximately $1.25 billion, financed 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 S. McKim, Chairman and Chief Executive Officer. “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. Safety-Kleen services more than 200,000 customer locations – we are looking forward to the substantial cross-selling opportunities we anticipate across our combined customer base. In addition, Safety-Kleen’s re-refining and recycling capabilities significantly broadens our existing portfolio of services and enhances the sustainability offerings available to our customers. We believe this transaction greatly enhances shareholder value and will support our growth momentum in 2013 and beyond. We welcome Safety-Kleen’s employees to the Clean Harbors team and look forward to advancing our combined organization.”
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. 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. The Company expects its combined 2013 adjusted EBITDA to be in the range of $605 million to $620 million, including approximately $30 million of acquisition-related synergies. These combined estimates include the previously announced stand-alone revenues for Clean Harbors in the range of $2.30 billion to $2.35 billion and adjusted EBITDA in the range of $425 million to $435 million.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV