Cleanaway to buy City of Melbourne waste services

Cleanaway CityWide purchase

Melbourne-based Cleanaway Waste Management Limited will buy the waste and recycling business and assets of Citywide Service Solutions for $110 million.

The deal includes a $35 million investment to develop the ageing waste transfer station at Dynon Road in West Melbourne. The redevelopment will be boosted by a further $10 million by the City of Melbourne over four years.

Citywide Waste provides waste management services to about 1500 municipal, commercial, and industrial customers in Melbourne, including Melbourne City Council.

The Dynon Road waste transfer station, located about five kilometres from the Melbourne central business district, is the second largest in the state, receiving more than 200,000 tonnes of waste and recycling material annually.

Cleanaway Chief Executive Officer and Managing Director Mark Schubert said the acquisition is an attractive opportunity to expand Cleanaway’s Solid Waste Services business in metropolitan Melbourne.

“Integrating Citywide Waste into our network is expected to deliver valuable efficiencies, while facilitating growth through the broadening of our municipal and commercial and industrial collections capabilities,” Schubert said.

“The redevelopment of Dynon Road will almost double its current operating capacity, unlocking attractive earnings growth for shareholders. It will also support future volume growth into our post collections infrastructure assets.

“Securing this site in inner-city Melbourne provides a strategic position in densely populated Melbourne metropolitan.”

Citywide Service Solutions Pty Ltd is a wholly owned subsidiary of the City of Melbourne, established in 1995.

Lord Mayor Sally Capp said she’s confident Cleanaway can ensure that Melbourne remains a clean and welcoming place for the community.

“Through this sale, we will partner with Cleanaway to build the best state-of-the-art waste transfer hub in the country – to meet the needs of the fastest growing city in Australia,” Capp said.

“We don’t take this decision lightly and have undertaken extensive analysis to ensure that benefits will flow back to the community.”

Surplus proceeds from the sale will provide a once-in-a-generation opportunity to establish a City of Melbourne Future Fund, to deliver strategic projects that benefit the community.

Surplus proceeds from the sale will provide a once-in-a-generation opportunity to establish a City of Melbourne Future Fund, to deliver strategic projects that benefit the community.

Citywide Chief Executive Officer Chris Campbell said the waste and recycling business has been an integral part of Citywide and its culture since formation almost 30 years ago, with a number of the current team transferring from the City of Melbourne then as inaugural employees.

“We are pleased that employees will be able to continue their career, and bring their experience, know-how and commitment to servicing Melbourne’s inner-city amenity, with a leader in the sector.”

The acquisition is subject to a range of conditions including Australian Competition and Consumer Commission (ACCC) regulatory approval.

For more information, visit: www.cleanaway.com.au

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