Clean Harbors to buy Safety-Kleen
NORWELL (AP) — Clean Harbors is buying Safety-Kleen for $1.25 billion in cash as it looks to enter smaller markets and expand its waste treatment capabilities.
Safety-Kleen Inc. is a re-refiner and recycler of used oil and provides parts cleaning and environmental services. It collects approximately 200 million gallons of used oil annually, the majority of which it returns to the marketplace as reusable motor oil. The company’s service fleet includes more than 2,300 vehicles and 1,000 rail cars.
Clean Harbors Inc., based in Norwell, provides environmental, energy and industrial services. It said Monday that it will be better able to penetrate small quantity waste generator markets and capitalize on increasing demand for recycled products after the acquisition.
Clean Harbors had a relationship with Safety-Kleen prior to the deal, having purchased its chemical services unit 10 years ago.
The Norwell company expects the acquisition to immediately add to its results, excluding one-time fees and acquisition-related expenses. It has received a financing commitment from Goldman Sachs Bank USA, but is currently considering several financing options that may include a combination of existing cash, debt and equity.
The deal, expected to close by year’s end, still needs approval from U.S. and Canadian regulators.
Cleans Harbors said that it will still report its third-quarter financial results on Nov. 7.