Safety-Kleen in secondary buyout

Electra Partners Europe has sold its interest in Safety-Kleen to JP Morgan Partners in a secondary buyout worth £280m. Electra Partners bought a 56% interest in Safety-Kleen Europe from Safety-Kleen Corp of the US in December 1998 for E154m, but about 18 months later, in August 2000, Electra Partners was able to pay just $35m for the remaining 44% of Safety-Kleen Corp, which subsequently went into bankruptcy. Of the 56% stake originally bought by Electra Partners, 12% was given to the management of the business.

Safety-Kleen Europe is a European leader in the provision of parts and paint gun cleaning equipment, serving over 100,000 automotive and industrial customers, from 12 European countries, although it is headquartered in the UK.

Since Electra Partners purchase of Safety-Kleen Europe in 1998, the business has more than doubled its profitability to EBITDA of £28m for the year to June 30, 2004.

ABN AMRO advised Electra Partners during the sale to JP Morgan Partners.