After filing for an initial public offering, Safety-Kleen has found another way to let its owners cash out: by selling the company.
On Monday, Safety-Kleen said that it will be acquired Clean Harbors, a provider of environmental cleanup services, for $1.25 billion in cash.
If completed, the transaction will mark yet another new owner for Safety-Kleen, which focuses on recycling used oil and cleaning industrial parts.
Founded in 1963 as a parts-washing business, the company later became publicly traded. It was then acquired by Laidlaw in 1998, following a hostile takeover campaign. Questions over Safety-Kleen's accounting practices prompted the company to file for bankruptcy protection two years later, handing over control to creditors like Highland Capital Management, Contrarian Capital Management and JPMorgan Chase.
After emerging from bankruptcy, Safety-Kleen sought to go public in 2008, but it was forced to scrap those plans during the financial crisis. It filed for an I.P.O. again in August, giving investors a potential opportunity to pare back their holdings.
The company currently has more than 200 locations in North America, including massive oil re-refineries in East Chicago, Ind. and Breslau, Ontario. It reported $1.3 billion in revenue and $135 million in net income last year.
Its new owner is Clean Harbors, which has expanded in part through takeovers. Monday's deal is by far the largest in the company's 32-year history, according to Standard & Poor's Capital IQ.
“This acquisition is a landmark achievement for Clean Harbors that we believe will build significant long-term value for our shareholders,†Alan S. McKim, Clean Harbors' chairman and chief executive, said in a statement. “Adding Safety-Kleen's re-refining and recycling capabilities to our current offerings will enhance the sustainability options available to our existing customers and significantly broaden the range of service s we can offer customers of both companies.â€
The two companies have previously done business together. In 2002, Clean Harbors purchased Safety-Kleen's chemical services division for $310 million.
The latest transaction is expected to close by year end, with Clean Harbors continuing to use the Safety-Kleen brand.
Safety-Kleen was advised by Credit Suisse, Morgan Stanley, Houlihan Lokey and the law firm Skadden, Arps, Slate, Meagher & Flom. Clean Harbors was counseled by the law firm Davis, Malm & D'Agostine.
