Clean Harbors Shares Jump on Acquisition
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.
Filed under: 24/7 Wall St. Wire, Industrials, Mergers & Acquisitions Tagged: CLH