Clean Harbors gets financing commitment for Safety-Kleen purchase

By Sara Rosenberg

New York, Oct. 29 - Clean Harbors Inc. has received a financing commitment from Goldman Sachs Bank USA for its acquisition of Safety-Kleen Inc., company officials said in a conference call on Monday.

Several financing options are being considered at this point that may include a combination of existing cash, debt and equity.

Officials went on to explain that there is about $530 million of cash on the balance sheet, of which maybe around $400 million will be used for the acquisition.

The plan is to have leverage around the 2.5 times area, definitely not more than 3 times, officials said, adding that structuring the financing in such a way would put the company in a good position going forward.

Under the agreement, Safety-Kleen, a Richardson, Texas-based re-refiner and recycler of used oil and a provider of parts cleaning and environmental services, is being purchased for $1.25 billion in cash from a group of investors including Highland Capital Management LP.

In 2011, Safety-Kleen generated revenues of $1.3 billion and adjusted EBITDA of $161 million.

Closing is expected by year-end, subject to U.S. and Canadian regulatory approvals and customary conditions

Clean Harbors is a Norwell, Mass.-based provider of environmental, energy and industrial services.

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