NSW waste and recycling organisation Bingo Industries has announced it is raising $120 million to acquire businesses National Recycling Group and Patons Lane.
The proceeds will also be used to fund organic redevelopment opportunities and repay debt used to fund its Has-a-bin acquisition in September 2017.
Bingo Industries floated on the stock market earlier this year. Approximately 63.2 million new shares are expected to be issued under the entitlement offer, with shareholders also offered one share for every 5.55 held.
The acquisitions, along with organic redevelopment of existing assets, are expected to support the company’s network capacity expansion across NSW and Victoria from 1.7 million tonnes per year to 3.4 million by 2020.
National Recycling Group (NRG) is the parent company of DATS Environment Services (DATS), Melbourne Recycling Centres and Harpers Bin Hire.
In a statement, Bingo Industries said that the acquisition will further accelerate its recent expansion into Victoria.
When commenting on the acquisition, CEO of Bingo Industries, Daniel Tartak, stated this venture will provide “compelling strategic benefits for Bingo.”
The move has led to the attainment of two new recycling centres in Victoria, and an additional recycling centre in New South Wales. Access to additional resources will be gained through DATS’ 55 trucks and 3,200 bins, in excess to Bingo’s current fleet, bins and waste infrastructure.