Electra Fleming Buys into Safety-Kleen Europe

Electra Fleming in late December announced it had provided a GBP120 million (euro 175 million) financing package to support the MBO of Safety-Kleen Europe from Safety-Kleen Corp of the US.

The transaction is notable as the first buyout where a significant proportion of the funding – the banking facilities provided by NatWest Acquisition Finance – was financed in euros. Another unusual feature is the joint-venture structure: Safety-Kleen Corp has retained an equal stake in the business alongside Electra Fleming.

Safety-Kleen Europe, headquartered in the UK, is an environmental services company focusing on recycling and ranks as the European leader in providing parts cleaning and spray-gun cleaner services for the automotive and industrial markets. The business operates 59 branches employing nearly 1000 people in the UK, Ireland, Belgium, France, Italy, Spain and Germany and achieved sales of GBP72 million in 1997.

The deal was the fifth European investment completed by Electra in the final quarter of 1998. During the year ended 30 September 1998, Electra invested in 31 European deals with an aggregate value of more than GBP2 billion, acting as leader or co-leader in all but four of the transactions.