Clean Harbors buys Safety-Kleen for $1.25 billion

Clean Harbors buys Safety-Kleen for $1.25 billion

By Editorial Staff, Resource Recycling

Waste management company Clean Harbors, Inc. has signed an agreement to purchase Safety-Kleen, Inc., a large re-refiner and recycler of used oil, for $1.25 billion.

Clean Harbors, headquartered in Norwell, Massachusetts, made the transaction in order to broaden its waste treatment capabilities to include re-refining of waste oil and solvent recycling capabilities. The company also hopes to tap into the growing demand for recycled products, including recycled oil, while also increasing its existing waste disposal treatment network and adding a profitable business to its operations.

In a prepared statement, Alan S. McKim, the chairman and CEO of Clean Harbors, noted that the two companies have a long-standing business relationship.

"Adding Safety-Kleen's re-refining and recycling capabilities to our current offerings will enhance the sustainability options available to our existing customers and significantly broaden the range of services we can offer customers of both companies," McKim said. "Safety-Kleen services over 200,000 customer locations, and we envision substantial cross-selling opportunities with its extensive customer base. These Safety-Kleen customers will now have direct access to our industry-leading network of disposal facilities."

With more than 200 locations throughout North America, Safety-Kleen, headquartered in Richardson, Texas, services commercial and industrial customers in the U.S., Canada and Puerto Rico. The company has re-refineries in East Chicago, Indiana and in Breslau, Ontario. Safety-Kleen currently employs approximately 4,200 workers and operates a sizeable service fleet of more than 2,300 vehicles and 1,000 rail cars. Currently, the company collects approximately 200 million gallons of used oil annually, the majority of which it returns to the marketplace as reusable motor oil. In 2011, Safety-Kleen managed hazardous and non-hazardous waste volumes equivalent to approximately 680,000 55-gallon drums. Safety-Kleen generated revenues of $1.3 billion in 2011.

The deal still needs to be approved by U.S. and Canadian regulators and is expected to be finalized by the end of the year.

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