Norwell, MA-based Clean Harbors, a provider of environmental, energy and industrial services, has signed a definitive agreement to acquire Safety-Kleen Inc., which is billed as the largest re-refiner and recycler of used oil in North America, as well as a provider of parts cleaning and environmental services.
Safety-Kleen has more than 200 locations across North America, employs roughly 4,200, and operates a service fleet of more than 2,300 vehicles and 1,000 rail cars. The company collects approximately 200 million gallons of used oil annually, the majority of which it returns to the marketplace as reusable motor oil.
Under the terms of the agreement, Clean Harbors will purchase Safety-Kleen in an all-cash transaction valued at $1.25 billion. The deal is subject to approval by U.S. and Canadian regulators, as well as other customary closing conditions. The transaction is expected to be completed by year-end.
The transaction allows Clean Harbors to broaden its waste treatment capabilities to include re-refining waste oil and expanded solvent recycling capabilities; capitalize on the growing demand for recycled products, including re-refined oil; and leverage the combined sales forces to maximize cross-selling opportunities.
Clean Harbors intends to maintain the Safety-Kleen brand and operate its network of branch locations as a subsidiary.
The two companies are not strangers. Not only has Safety-Kleen been a large customer of Clean Harbors’ environmental services business, but, about a decade ago, it was Clean Harbors that acquired Safety-Kleen’s chemical services division.
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