Case Study | Highland Capital Management Turns Around Safety Kleen

By March 7, 2013Videos

Safety-Kleen is a leading provider of environmental services and the largest re-refiner of oil in the United States.

Highland built a position in the debt and equity of Safety-Kleen over a number of years. However, our Distressed and Special Situations team began investing in Safety-Kleen during the summer of 2009.

At the time of the Distressed and Special Situations team’s investment, Safety-Kleen faced a number of operational challenges ranging from declining customer satisfaction to slow reaction time to changes in crude oil prices.

The Distressed and Special Situations team assisted Safety-Kleen’s board of directors to recruit a new senior leadership team and partnered with that team to turn around the business. Highland personnel assisted Safety-Kleen’s management team to implement Lean Six Sigma and project management disciplines, which resulted in a 38% increase in customer satisfaction and dramatic improvements in profitability.

On December 28, 2012, Clean Harbors (NYSE:CLH) purchased Safety-Kleen for $1.25 billion.

About Safety-Kleen
Safety-Kleen is a leading North American used oil recycling and re-refining, parts cleaning and environmental solutions company, with approximately 4,200 employees serving more than 200,000 customer locations in the United States, Canada and Puerto Rico. Safety-Kleen provides a broad set of environmentally-responsible products and services that keep North American businesses in balance with the environment. Safety-Kleen is a wholly owned subsidiary of Clean Harbors, North America’s leading provider of environmental, energy and industrial services. For more information about the company, please visit www.safety-kleen.com.

Disclaimer

This is a link to publicly available media regarding a portfolio investment that is not representative of the entire portfolio or its returns.  Past performance does not assure future results.  Please refer to the applicable fund documents and our Form ADV for further information.  Nothing herein is intended as an advertisement for any advisory services or relationship.

 

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