Cleanaway Waste Management has acquired the assets of SKM Recycling for approximately $66 million.
The acquisition follows a public sale process by KordaMentha, who were appointed receivers and managers of SKM by Cleanaway, after the company acquired SKM’s senior secured debt.
Cleanaway CEO and Managing Director Vik Bansal said significant progress had been made clearing waste stockpiles, repairing plants and equipment and bringing SKM sites to required safety, environmental and operational standards.
“I would like to acknowledge and thank the Victorian Government who helped expedite the clearing of waste stockpiles and the return of operations at the Laverton North site, through the loan provided to the receivers,” Mr Bansal said.
“We expect to gradually restore operations in Victoria over the coming months, to provide councils with a quality, sustainable solution for their recycling.”
Pursuant to the acquisition, Cleanaway will obtain the properties, plant, equipment and other assets of SKM, subject to customary completion adjustments.
The acquisition will provide Cleanaway with a network of five recycling sites, including three material recovery facilities and a transfer station in Victoria and a material recovery facility in Tasmania.
One of the Victorian facilities, in Laverton North Victoria, includes an advanced plastic sorting facility that separates plastics into individual polymer grades for sale or input into pelletising facilities.
According to an ASX statement, the acquisition also includes two properties in South Australia, which are not currently expected to form part of future operations and may be sold.
“Cleanaway is expected to offer employment to the majority of SKM’s full time staff,” the statement reads.
Completion of the acquisition is expected to occur by the end of October, with sale proceeds applied to repay Cleanaway’s senior secured debt, accrued interest and costs associated with the receivership.