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.