Chemical waste management organisation Toxfree has completed an asset swap with privately-owned waste management company J.J Richards & Sons.
The strategic transaction with JJ Richards involves the sale of Toxfree’s Tasmania and Rockhampton business and the purchase of JJ Richards’ industrial business in Roma, Queensland.
The transaction involved an effective asset swap at equivalent earnings and asset value.
Toxfree in a statement said the Roma assets and revenues better align with Toxfree’s strategic focus and provides opportunity to strengthen its existing businesses in Roma.
It said the purchase of the JJ Richards’ industrial business in Roma is a strong fit with Toxfree’s strategy to service the Coal Seam Gas resource sector in Queensland.
“JJ Richards has major contracts with Schlumberger for Origin production drilling, as well as several other industrial clients in the region,” the company said.
Steve Gostlow, Toxfree Managing Director said the CSG sector in central Queensland was a very attractive market for Toxfree.
“We expect to realise synergies and improve our returns through consolidation with our existing industrial services business in Roma,” he said.
“The region will be a large gas production hub for decades to come, and Toxfree is focused on positioning its business as the leading provider of specialist waste and industrial services to the market.”