Clean Harbors Shares Jump on Acquisition

Before you go, we thought you'd like these...
Before you go close icon

Environmental cleanup firm Clean Harbors Inc. (NYSE: CLH) announced on Monday that it has signed a definitive agreement to acquire privately held Safety-Kleen Inc. in an all-cash deal worth $1.25 billion. Safety-Kleen is a oil re-refining and recycling firm.

Clean Harbors' CEO said:

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.

Clean Harbors said that the acquisition is expected to be immediately accretive to earnings, not including one-time fees and acquisition-related expenses.

The company said it has received a financing commitment from Goldman Sachs, but that Clean Harbors "is currently considering several financing options for the transaction that may include a combination of existing cash, debt and equity."

Shares of Clean Harbors are up about 9.2% in premarket trading this morning, at $54.00. Shares closed at $49.44 on Friday, in a 52-week range of $46.94 to $71.63.

Paul Ausick

Filed under: 24/7 Wall St. Wire, Industrials, Mergers & Acquisitions Tagged: CLH
Read Full Story

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

People are Reading