Cleanaway to buy Tox Free Solutions

Cleanaway Waste Management to acquire rival waste management company.

Cleanaway Waste Management is set to acquire rival waste collection company Tox Free Solutions.

Cleanaway has offered a cash price of $3.425 per share, valuing Tox Free at $671 million. Tox Free is a major waste management company with operations across four core service lines, including; waste, technical and environmental, industrial and health. The company’s national network includes 29 facilities and a fleet of 895 waste management vehicles.

Under the proposal Tox Free shareholders will also be entitled to an interim dividend for FY2018 equal to $0.05 per share if they continue to hold their shares on the record date for that dividend, which is expected to be in March 2018.

In a statement Tox Free directors unanimously recommended shareholders vote in favour of the scheme. Toxfree chairman, Robert McKinnon, said the board unanimously concluded the proposal represents a compelling offer for shareholders.

“The scheme consideration of $3.425 per share plus the FY2018 interim dividend payment of $0.05 per share reflects the strategic value of the Toxfree business to Cleanaway, as well as the potential synergies that can be realised from the combination of the two businesses.”

Cleanaway CEO and managing director Vik Bansal said the acquisition will consolidate Cleanaway’s position as a waste management leader in Australia, with the transaction expected to deliver $35 million in “annual synergies”.

“Toxfree complements and integrates into our operating model, enhances our business in all areas and creates potentially significant operating leverage across all our businesses.

“The acquisition will accelerate the implementation of our Footprint 2025 strategy by adding prized infrastructure assets  across the country as well as contributing an exciting new business in the form of a leading, vertically integrated provider of healthcare waste management products  and services, including collection, transport and treatment of sharps, clinical and related waste,” Bansal  said.

The transaction will be subject to standard regulatory conditions, including approval from the Australian Competition and Consumer Commission.

Leave a comment:

Your email address will not be published. All fields are required