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.