Date: August 14, 2012
Source: Safety-Kleen, Inc.
Safety-Kleen Inc. (Plano, TX) filed plans for an initial public offering of as much as $400 million in stock. However, the company will not receive any proceeds of the sale since it is the stockholders who are selling shares in the offering. The company's owners, which include Dallas-based asset manager Highland Capital Management LP, J.P. Morgan Chase & Co. and distressed-asset investor Contrarian Capital Management LLC, have hired Credit Suisse Group to advise them on the sale.
Though it is still widely known for its parts-cleaning systems, the company has expanded into industrial waste handling and oil recycling, operating used-oil refineries in Ontario and East Chicago, IL. Revenue and profits have grown significantly in each of the last three years. For the 16 weeks ended April 16, Safety-Kleen's profit increased 61% to $17.2 million while sales rose 19% to $426.6 million, according to its regulatory filing.
The company intends to trade on the New York Stock Exchange under the symbol "SK."
Safety-Kleen had been a public company until it filed for Chapter 11 bankruptcy protection in 2000 in the wake of an accounting scandal. In 2003, the company sold its Chemical Services division to Clean Harbors Inc. for about $300 million. Since then, under the able hands of former CEO Fred J. Florjancic, the company has steadily grown its business. In 2008, Safety-Kleen registered for an IPO but pulled those plans a few months later, citing market conditions. In 2010 the company rejected an offer from Clean Harbors to buy them for $13 a share ($716 million) under the belief that it was worth at least $20 a share ($1.1 billion), according to an opinion in a Delaware Court of Chancery case related to those talks.
August 14, 2014
Safety-Kleen Files Registration Statement for Initial Public Offering
Safety-Kleen, Inc. (Safety-Kleen) today announced that is has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission for a proposed initial public offering of its common stock. The offered shares will be sold by certain of its stockholders. Safety-Kleen plans to apply to list its shares on the New York Stock Exchange.
Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC are acting as joint book-running managers for the offering. The offering will be made only by means of a prospectus. A copy of the preliminary prospectus for the proposed offering may be obtained, when available, by writing or telephoning Credit Suisse Securities (USA) LLC, Attention: Prospectus Department, One Madison Avenue, New York, New York 10010, 800-221-1037, firstname.lastname@example.org, or Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014, 866-718-1649, email@example.com.
A registration statement relating to these securities has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to their registration or qualification under the securities laws of any such state or jurisdiction.
Safety-Kleen is a leading provider of environmental services to commercial, industrial and automotive customers, and the largest re-refiner of used oil and provider of parts cleaning services in North America, with approximately 4,200 employees serving more than 200,000 customer locations in the United States, Canada and Puerto Rico. Safety-Kleen delivers a set of sustainable services to meet the required, recurring environmental needs of its customers.