By Melodie Warner
Safety-Kleen Inc. filed plans for an initial public offering of as much as an estimated $400 million in stock.
The company won't receive any proceeds from the sale, as its stockholders are selling the shares in this offering.
The Wall Street Journal had reported in June that the owners of the oil recycler and industrial-parts cleaner--which include Dallas-based asset manager Highland Capital Management LP, J.P. Morgan Chase & Co. (JPM) and distressed-asset investor Contrarian Capital Management LLC--planned to offer the company for sale, while also laying the groundwork for an IPO. People familiar with the matter had told The Journal that either route would likely value the company at about $1 billion.
Safety-Kleen has shifted in and out of public ownership since 1954 when Wisconsin inventor Ben Palmer launched the company with his auto-parts cleaning system--a sink mounted atop a red drum that is still common in auto-repair shops. In 2008, Safety-Kleen had previously registered for an estimated IPO of $900 million, but pulled those plans a few months later, citing market conditions.
Though it is still widely known for its parts-cleaning systems, the company has expanded into industrial waste handling and oil recycling, operating used-oil refineries in Ontario and East Chicago, Ill.
For the 16 weeks ended April 16, Safety-Kleen's profit increased 61% to $17.2 million while sales rose 19% to $426.6 million, according to its regulatory filing.
The company intends to trade on the New York Stock Exchange under the symbol SK.
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