UPDATE 3-Clean Harbors to buy longtime target Safety-Kleen for $1.25 bln
* Clean Harbors says deal to immediately add to earnings
* Says acquisition to boost oil re-refining services
By Swetha Gopinath
Oct 29 (Reuters) - Waste management company Clean Harbors Inc will buy Safety-Kleen Inc for $1.25 billion to expand into the business of recycling used motor oil, two years after the privately held firm rejected its initial bid.
The acquisition of Safety-Kleen, which also provides environmental services to motor races including NASCAR, will help Clean Harbors expand its solvent-recycling capabilities and broaden its waste treatment services.
Clean Harbors has long been interested in Safety-Kleen, a competitor and customer whose chemical services business it bought a decade ago.
Norwell, Massachusetts-based Clean Harbors proposed to buy Safety-Kleen for $13 per share in 2010 but the company sought more than $20 per share.
The latest offer equates to $24.50 per share based on Safety-Kleen's outstanding shares as of Aug. 31.
"Valuation of the deal looks attractive at 6.5 times earnings before interest, taxes, depreciation, and amortization especially given the strength of the business," said a Clean Harbors shareholder, who did not wish to be named. Continued...