Clean Harbors to acquire Safety-Kleen division
Apr 1, 2002 12:00 PM
Clean Harbors Inc, provider of environmental and biohazard remediation services throughout the United States and Puerto Rico, has signed a definitive agreement to acquire the Chemical Services Division of Safety-Kleen Corp (CSD/SK). Under terms of the agreement, Clean Harbors will purchase this division for $46.3 million in cash and will assume certain environmental liabilities valued at approximately $265 million.
Based on current information and subject to additional due diligence review, Clean Harbors expects to generate more than $100 million of EBITDA during the first full year after synergies of combined operations have been realized. The combined company is expected to have annual revenue of about $750 million, as well as approximately 4,400 employees.
CSD/SK consists of 50 primary facilities, including 21 service centers, six wastewater treatment facilities, nine landfills, and four incinerators. Addition of Safety-Kleen's 50 facilities broadens Clean Harbors' geographic reach, particularly in the West Coast and Southwest regions as well as Canada and Mexico. Clean Harbors expects the acquisition to make it the largest operator of hazardous waste disposal facilities in North America.
The acquisition will not include Safety-Kleen's Pinewood Landfill in South Carolina. Safety-Kleen is currently under Chapter 11 protection in US Bankruptcy Court for the District of Delaware, which it entered voluntarily along with 73 of its US subsidiaries, in June 2000. This acquisition is subject to the approval of the bankruptcy court, various regulatory approvals, satisfactory completion of due diligence, and obtaining adequate financing. Clean Harbors expects the transaction to close during third-quarter 2002.
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