Calgary Herald

Clean harbors buying Peak energy


Clean Harbors Inc., a provider of environmen­tal and related services, said it will buy Calgary-based Peak Energy Services Ltd for about $161 million in cash to expand its presence in the energy services market, sending its shares up to an all-time high.

The company, which was involved in the offshore cleanup after last year’s BP PLC well blowout, will assume about $35 million of Peak’s net debt.

Clean Harbors will pay 95 cents for each Peak share, which translates to a 28 per cent premium over the stock’s closing price of 74 cents on Tuesday on the Toronto Stock Exchange. Peak Energy’s board, the company’s executives and its largest shareholde­r — Deans Knight Capital Management — are in support of the deal.

They have a combined stake of 53.6 per cent.

Peak Energy provides drilling and production equipment and services to oil and natural gas companies, besides offering water technology solutions. Its 2010 revenue was $153 million.

The deal comes in the wake of Clean Harbors’ acquisitio­n of Ca- nadian Badger Daylightin­g in January.

Clean Harbor said adding Peak and Badger to its existing assets will give it a sizable presence in the rapidly expanding energy services space.

Clean Harbors expects the deal to close in the second quarter of 2011. It said the acquisitio­n would immediatel­y add to earnings.

Peak Energy shares rallied as much as 28 per cent to meet the offer price, touching a 28-month high of 95 cents and then closing at 93 cents in Toronto on Wednesday. Clean Harbors shares rose 6 per cent to $105.72 on the New York Stock Exchange.

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