Perth companies Tox Free Solutions and Imdex are worlds apart in their core operations, but one trait they share is a desire to grow by acquisition.
Perth companies Tox Free Solutions and Imdex are worlds apart in their core operations, but one trait they share is a desire to grow by acquisition.
They both announced new acquisitions this week, adding to a string of purchases they have made in the past two years.
In the process, they have each established strong positions in their respective markets.
Waste management company Tox Free Solutions has made its fourth substantial acquisition in the past year, paying $13 million in cash and shares for privately-owned Kimberley Waste Services.
Kimberley provides waste management services throughout the Kimberley and Gascoyne regions, and is expected to contribute $2 million in earnings (before interest, tax, depreciation and amortisation) per year to Tox Free.
Tox Free believes it will gain further upside through synergies, integration of its existing business with Kimberley and growth in the regions where Kimberley operates.
It said the acquisition would allow it to offer total waste management services for all types of waste material in every major geographic area of WA.
Kimberley was established by industry veteran Wynn Rees in Broome in 1989. Mr Rees previously established Western Waste in Perth in 1975, which was subsequently acquired by international company SITA.
The payment for the acquisition will comprise $8.95 million in cash and three million Tox Free shares
Drilling products company Imdex plans to acquire privately-owned Swedish borehole survey systems supplier Flexit AB and Flexit Navigation AB for $22 million in a cash and shares.
Imdex chairman Ian Burston announced the firm would pay $12 million in cash at settlement and allot five million shares (at $2 per share) to the company owners, Claes and Birgitta Ericsson, after two years.
Mr Burston said the acquisition was in line with Imdex’s growth plans by expanding its product range, strengthen its skills base and diversify its market opportunities.
Flexit is a Sweden-based global supplier of borehole survey systems to the mineral exploration, mining, tunneling and geotechnical industries.
Its projected EBIT for the year ending December 31 2007 is approximately $5 million on revenue of $15 million.