Electra Fleming last month announced it had provided a GBP120 million ($199 million) financing package to support the MBO of Safety-Kleen Europe from Safety-Kleen Corp. of the U.S.
The transaction is first buyout in which a significant portion of the funding, including the banking facilities provided by NatWest Acquisition Finance, was financed in euros. Another unusual feature is the joint-venture structure through which Safety-Kleen Corp. will retain an equal stake in the business alongside Electra Fleming.
Safety-Kleen Europe, which is headquartered in the U.K., is an environmental services company focusing on recycling. The company ranks as the European leader in providing parts cleaning and spray-gun cleaning services for the automotive and industrial markets. The business operates 59 branches employing nearly 1,000 people in the U.K., Ireland, Belgium, France, Italy, Spain and Germany and achieved sales of $120 million in 1997.
The deal was the fifth European investment completed by Electra in the final quarter of 1998. During the year ended Sept. 30, 1998, Electra invested in 31 European deals with an aggregate value of more than $3.3 billion, acting as leader or co-leader in all but four of the transactions.