-
Transaction Broadens Clean Harbors Waste Treatment and Recycling
Capabilities
-
Drives Substantial Increase in Waste Volumes
-
Provides Significant Cross-Selling Opportunities
NORWELL, Mass.--(BUSINESS WIRE)--Dec. 28, 2012--
Clean
Harbors, Inc. (“Clean Harbors”) (NYSE: CLH), the leading provider of
environmental, energy and industrial services throughout North America,
today announced the completion of its acquisition of Safety-Kleen, Inc.,
a leading provider of parts cleaning and environmental services and the
largest re-refiner and recycler of used oil in North America. Clean
Harbors purchased Safety-Kleen in an all-cash transaction valued at
approximately $1.25 billion, financed through the combination of $289
million of existing cash, $370 million in net proceeds from its recently
completed follow-on offering of common stock and $591 million in net
proceeds from its recently completed Senior Notes offering.
“The acquisition of Safety-Kleen aligns perfectly with our strategy of
expanding our Environmental Services business in North America,” said
Alan S. McKim, Chairman and Chief Executive Officer. “Safety-Kleen
brings well-established leadership positions in several important
markets, including parts cleaning, small quantity waste generators and
used oil recycling. We expect the transaction to drive a substantial
increase in waste volumes into our waste disposal treatment network.
Safety-Kleen services more than 200,000 customer locations – we are
looking forward to the substantial cross-selling opportunities we
anticipate across our combined customer base. In addition,
Safety-Kleen’s re-refining and recycling capabilities significantly
broadens our existing portfolio of services and enhances the
sustainability offerings available to our customers. We believe this
transaction greatly enhances shareholder value and will support our
growth momentum in 2013 and beyond. We welcome Safety-Kleen’s employees
to the Clean Harbors team and look forward to advancing our combined
organization.”
Based on the current operating and anticipated future performance of
Safety-Kleen, Clean Harbors expects the acquisition will be immediately
accretive, excluding one-time fees and acquisition-related expenses. For
2012, Safety-Kleen expects revenues of approximately $1.35 billion and
adjusted EBITDA of approximately $160 million. For 2013, Clean Harbors
expects that on a combined basis with Safety-Kleen, it will have
revenues in the range of $3.72 billion to $3.77 billion. The Company
expects its combined 2013 adjusted EBITDA to be in the range of $605
million to $620 million, including approximately $30 million of
acquisition-related synergies. These combined estimates include the
previously announced stand-alone revenues for Clean Harbors in the range
of $2.30 billion to $2.35 billion and adjusted EBITDA in the range of
$425 million to $435 million.
About Clean Harbors
Clean
Harbors (NYSE: CLH) is the leading provider of environmental, energy
and industrial services throughout North America. The Company serves a
diverse customer base, including a majority of the Fortune 500
companies, thousands of smaller private entities and numerous federal,
state, provincial and local governmental agencies. Through its
Safety-Kleen subsidiary, Clean Harbors also is a premier provider of
used oil recycling and re-refining, parts cleaning and environmental
services for the small quantity generator market.
Headquartered in Massachusetts, Clean Harbors has waste disposal
facilities and service locations throughout the United States and
Canada, as well as Mexico and Puerto Rico. For more information, visit www.cleanharbors.com.
Safe Harbor Statement
Any statements contained herein that are not historical facts are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
generally identifiable by use of the words “believes,” “expects,”
“intends,” “anticipates,” “plans to,” “estimates,” “projects,” or
similar expressions. Such statements may include, but are not limited
to, statements about the benefits of the acquisition of Safety-Kleen,
including future financial and operating results, the combined company’s
plans, objectives, expectations and intentions and other statements that
are not historical facts. Such statements are based upon the beliefs and
expectations of Clean Harbors’ management as of this date only and are
subject to certain risks and uncertainties that could cause actual
results to differ materially, including, without limitation, those items
identified as “risk factors” in Clean Harbors’ most recently filed Form
10-K and Form 10-Q. Therefore, readers are cautioned not to place undue
reliance on these forward-looking statements. Clean Harbors undertakes
no obligation to revise or publicly release the results of any revision
to these forward-looking statements other than through its various
filings with the Securities and Exchange Commission, which may be viewed
in the “Investors” section of Clean Harbors’ website.
Source: Clean Harbors, Inc.
Clean Harbors, Inc.
James M. Rutledge, 781-792-5100
Vice
Chairman, President and Chief Operating Officer
InvestorRelations@cleanharbors.com
or
Sharon
Merrill Associates
Jim Buckley, 617-542-5300
Executive Vice
President
clh@investorrelations.com
