Clean Harbors chasing deals; sees higher Q3 revenue

* Aiming for a 6-8 percent a year growth rate

* Looking to buy a $400-$500 million revenue company

* May make multiple Canada, U.S. acquisitions by year-end

* Sees 10-15 pct growth in site services unit over 3-5 years

* Sees Q3 revenue at the higher end of previous forecast

BANGALORE, Sept 10 - Waste management company Clean Harbors Inc plans to aggressively pursue deals and sees third-quarter revenue at the higher end of its previous forecast, in spite of an economic slowdown and credit crunch, its CEO said.

"We have a lot more debt capacity than we currently have," Chief Executive Alan McKim said in an interview to Reuters.

McKim said he was looking to buy companies, which fall in the $400 million to $500 million revenue bracket.

Clean Harbors -- which collects, treats and disposes hazardous and non-hazardous wastes -- currently has about $250 million in cash on its balance sheet, with total outstanding debt of $65 million to $70 million.

The company has already made three acquisitions this year and is aiming for more before the end of 2008 as it plans to double the size of its business in the next three to five years.

This, he believes, will put the company on track to achieve a 6 percent to 8 percent a year growth rate.

The Norwell, Massachusetts-based company is hoping to acquire companies, having permanent treatment, storage and disposal facilities "that would be difficult to duplicate."

"There are probably 20 companies out there that own those facilities, in both Canada and the United States. Some of those companies may operate one or two plants and others might have 10 plants," said McKim, adding that he would not shy away from making multiple acquisitions if the opportunity arose.

"If it could give us more of a geographic reach, particularly in the west of the U.S. or in Canada, that would be of interest to us too."

Clean Harbors, which competes with larger rival Waste Management Inc, currently serves over 45,000 customers, in 36 U.S. states, six Canadian provinces, and in Mexico and Puerto Rico.

The company is also looking at acquisitions that will add new technologies, which will help expand its landfill and incineration capabilities. Clean Harbors currently has a 65 percent share in incinerator capacity and about 16 percent of the landfill market in North America.

It is also the largest operator of hazardous waste disposal assets in North America and functions in two segments -- technical services, forming about 70 percent of its revenue stream, and site services, which contributes the rest.

McKim expects site services to grow faster than the other segment in the next three to five years and account for a 40 percent revenue share.

He, however, said future acquisitions would be made keeping in mind the expansion of both segments as they share a symbiotic relationship.

The company is also confident of reporting third-quarter revenue at the higher end of its previous expectations.

Clean Harbors had forecast third-quarter revenue in the range of $270 million to $275 million, above analysts estimates of $268.6 million.

Shares of the company were trading almost flat at $72.05 in afternoon trade on Nasdaq. They have risen nearly 61 percent in the last twelve months, touching their lifetime high of $82.99 on August 28.