ToxFree makes $13m Kimberley acquisition

Waste management company Tox Free Solutons Ltd has made its third 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, from Carnarvon north to Wyndham, 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. He previously established Western Waste in Perth in 1975. That business 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.