Bingo Industries to raise $120m for acquisitions

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.

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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.

Bingo Industries float pays off for the company

Waste trucks transporting waste

NSW waste and recycling company Bingo Industries has floated onto the stock market – with the CEO Daniel Tartak said to collect $420 million from the move.

The Australian Financial Review reported that the Sydney-based company has become a $628 million company over a period of 12 years, after the Tartak family purchased a small skip bin firm more than a decade ago.

The company now runs 158 collection trucks and nine recycling centres in Sydney. The family will still maintain 30 per cent in a holding valued at $188 million.

Daniel Tartak has been CEO since June 2015, but he has been with the business for 12 years.

The four-truck skip bin company that helped define Bingo was acquired in 2005 for less than $1 million by Tony Tartak, Daniel’s father.

Daniel Tartak told the Australian Financial Review on Tuesday the family had seen a gap in the market and had the courage to back itself.

“We saw there was a big opportunity in offering a more innovative service in waste management and we really just went for it,” he said.

Bingo chairman Michael Coleman, who is a director of Macquarie Group said in a letter to potential investors that the company was a leader in building and demolition waste collection in Sydney and its presence in waste collection in the commercial and industrial market was growing strongly, largely through “market share gains”.

The commercial and industrial waste collection service commenced in 2013-14, but is expected to produce revenue of $31.7 million in 2016-17.

Mr Coleman said the broad dynamics in the sector were working for Bingo, with strong investment in infrastructure and population growth driving demand, while there was a “clear preference” for diversion of waste from landfill by governments, corporations and consumers, and this bolstered the importance of recycling.

The prospectus said the entire Australian waste management sector grew at a compound annual growth rate of 7.2 per cent between 2007 and 2015.