Tox Free in asset swap

Waste management business Tox Free Solutions has traded two of its east coast businesses for an industrials business owned by JJ Richards & Sons under an asset swap agreement.

Perth-based Toxfree sold its Rockhampton and Tasmania waste services businesses to JJ Richards, in exchange for JJR’s industrial business in Queensland.

In a statement, Toxfree said the two businesses were acquired through the purchase of Wanless in 2013, and provide a combination of municipal and commercial solid waste and recycling services.

“While these businesses have performed adequately for Toxfree, these markets and regions are not a strategic focus for Toxfree going forward,” it said.

“The opportunity to recycle capital into more strategic and better returning assets will strengthen our business and align our focus.

“The purchase of JJR’s industrial business in Roma is a strong fit with Toxfree’s strategy to service the coal seam gas resources sector in Queensland. It will complement Toxfree’s existing business activities in the Surat Basin region and will enable Toxfree to realise synergies by integrating the two businesses.”

Toxfree said all clients, employees and assets of the Roma business would join Toxfree as part of the deal.

Toxfree managing director Stephen Gostlow said the company was focused on positioning its business as a leading provider of specialist waste and industrial services to the coal seam gas market in Queensland.

Toxfree shares were 2.9 per cent lower to $2.30 each at 12:30pm.