Waste management technology company Tox Free Solutions has expanded its footprint on Australia’s east coast, acquiring three related firms for $85 million.
Waste management company Tox Free Solutions has expanded its footprint on Australia’s east coast, acquiring three related firms for $85 million.
Tox Free announced today it would acquire Wanless Enviro Services, Smart Skip and Jones Enviro Services, as well as some of the assets of Wanless Enviro Asset Management, for a collective sum of $85 million.
Wanless Enviro Services provides solid waste management solutions across Queensland, with branches from Cairns, to Gold Coast and Toowoomba, while construction and demolition waste firm Smart Skip operates primarily in south east Queensland.
Jones Enviro Services provides industrial, commercial and municipal waste recovery, as well as recycling services in Tasmania.
Tox Free said the acquired firms were expected to deliver revenue of $62 million and full-year earnings before interest, depreciation and amortisation (EBITDA) of $14.6 million for the current financial year.
The purchase will partially be funded by a $43 million institutional placement, fully underwritten by Morgan Stanley, as well as a new $50 million debt facility with ANZ Banking Group.
Tox Free will also launch a share purchase plan in conjunction with the placement.
Both the placement and the purchase plan will be offered at $3.16 per share.
Managing director Steve Gostlow said the acquisition was a significant expansion into the east coast market, positioning Tox Free to take advantage of growth underway in Queensland’s resources sector.
“The focus on the commercial and industrial collection market is a good strategic fit for Tox Free, with its strong growth potential and substantial market size, and represents a significant opportunity to leverage our hazardous and industrial services offerings and accelerate our east coast strategy,” Mr Gostlow said in a statement.
“In addition to the substantial market presence in the South East metropolitan markets, Tox Free is attracted by the potential to expand the services offered in the regional branches, and to work with local management to offer clients a total waste management solution.”
Tox Free shares entered a trading halt this morning, having last traded at $3.28.
