Clean Harbors buys Texas oil recycler
Oct 29, 2012 (Menafn - Boston Herald - McClatchy-Tribune Information Services via COMTEX) --Clean Harbors Inc., the Norwell-based hazardous material cleanup and disposal company, yesterday announced plans to buy Safety-Kleen Inc. of Texas for 1.25 billion, primarily to expand into the used-oil recycling and re-refining business.
"Safety-Kleen services over 200,000 customer locations, and we envision substantial cross-selling opportunities with its extensive customer base," Clean Harbors' CEO Alan S. McKim said in a statement. "These Safety-Kleen customers will now have direct access to our industry-leading network of disposal facilities."
Richardson, Texas-based Safety-Kleen is North America's largest re-refiner of used oil, a business that makes up approximately 44 percent of its annual revenues, the company said in August, when it filed for a 400 million initial public offering.
Michael E. Hoffman, managing director at Wunderlich Securities, said Clean Harbors is paying a "very fair valuation" for Safety-Kleen, which has a large footprint west of the Mississippi River.
"Leveraging that creates a real competitive opportunity for Clean Harbors," Hoffman told the Herald.
It also gives Clean Harbors substantial market share in the used-oil business, he said.
The cash transaction is expected to be completed by the end of the year.
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