Christchurch-based WasteCo Group has purchased in Invercargill-based Cleanways and its related companies and assets for $7.3 million.
The recently-listed waste management group says the deal is now unconditional with settlement scheduled for June 1. It first updated the NZX with the announced acquisition on May 18.
Cleanways shareholders will take $2.2m in WasteCo shares, with the remainder of the purchase price being paid in cash on settlement.
Related companies include Enviro South (2015) Limited and Wastech Services (Central Otago) Limited.
Cleanways and Enviro South specialise in bulk liquid waste, providing a range of services across Southland.
Wastech Services is based in Cromwell and specialises in the removal of all bulk liquid and solid waste, providing services throughout the Central Otago region.
Cleanways, Enviro South and Wastech Services have together established working relationships with a range of commercial, local body and private customers.
They will continue to operate from their current premises following the acquisition. Cleanways managing director Lloyd Phillips will remain as an advisor to the businesses for the next two years.
WasteCo listed on the NZX on December 5 last year through a reverse listing transaction. At that time, the group announced an overall growth strategy to expand its South Island operations. The latest acquisition and the recent acquisition of Nelson-based Central Suction Cleaners puts the group on track with its growth strategy, the company says.
These latest acquisitions further WasteCo’s service offerings, with existing operations based primarily in Nelson, Christchurch, Ashburton, Timaru, Oamaru, Dunedin and Balclutha.
“Having successfully expanded our footprint to cover the South Island from top to bottom, our next focus is on using this footprint as a launchpad to expand the range of services we offer,” WasteCo chair Shane Edmond says.
“We want to offer the full range of WasteCo services from every one of our bases – existing and new.
“This is an exciting journey for WasteCo and we are really looking forward to being able to offer our customers so much more,” Edmond says.
WasteCo was established in 2013 and is based in Christchurch. It provides solutions for household, commercial, industrial and local authority customers.
The firm has also announced its full-year results, with revenue growth up 83% to $34.4m. The firm made a net loss of $1.9m while operating EBITDA was up 83% to $5.9m.
The company is currently trading at 0.7 cents per share.
