Cleanaway CEO and Managing Director Vik Bansal is stepping down as part of an orderly leadership transition.
Following the release of Cleanaway’s earnings, CEO Vik Bansal shares how the leading waste management company grew and remained resilient through delivering its 10-year strategic plan.
Australia’s major waste management companies Toxfree and J.J. Richards & Sons explain how they are benefiting from Vaclift’s versatile BoB ITK multihook height machines. Read more
Cleanaway has agreed to acquire Tox Free Solutions (Toxfree) for about $671 million.
Cleanaway is offering $3.425 for each Toxfree share and the integration of the business is expected to deliver about $35 million in annual synergies over a two-year period. Toxfree shareholders will be able to receive a 5c a share interim dividend.
To fund the acquisition, Cleanaway will launch a fully underwritten $590 million 1 for 3.65 pro rate accelerated entitlement offer and draw down debt from a new multi-tranche facility.
- Toxfree cites growth in FY2017 results
- Toxfree provides market update at UBS Australasia Conference 2017
- Expansion of Cleanaway’s Ravenhall tip approved
In a statement, Toxfree board of directors reportedly unanimously recommended that shareholders vote in favour of the scheme, and will vote the shares they own or control in favour of it, in the absence of a superior proposal.
Cleanaway Chief Executive Officer Vic Bansal said acquiring Toxfree will consolidate Cleanaway’s position as Australia’s leading waste management company, balancing and re-weighing its integrated waste model.
“The acquisition will accelerate the implementation of our Footprint 2025 strategy by adding prized infrastructure assets across the country, as well as contributing an exciting new business in the form of a leading, vertically-integrated provider of healthcare waste management products and services, including collection, transport and treatment of sharps, clinical and related waste,” he said.
The scheme consideration values Toxfree’s fully diluted equity at approximately $671 million. The transaction will be subject to standard regulatory conditions, including Australian Competition and Consumer Commission approval. A scheme booklet, independent expert’s report, reasons for the directors’ recommendation and details of the scheme will be prepared and provided for review to the Australian Securities and Investments Commission for review, expected in February 2018.
Toxfree expects to update the market on an indicative timetable in January 2018.
Toxfree has provided an update across its target markets: industrial, resources, infrastructure and health and technical.
In a public presentation to the UBS Australasia Conference 2017, Steve Gostlow, Toxfree Managing Director, highlighted Toxfree’s target market as valued at $4.6 billion in 2016.
Toxfree’s total market was valued at $15.8 billion and also includes: commercial and government, households and the construction industry.
The company’s growth has been aided by strategic acquisitions, organic growth and investment, allowing it to diversify. It now boasts 1,564 employees in 81 operating locations and 895 vehicles.
Some of the key growth drivers behind its growth in the health sector including an ageing population, advances in medical treatments, new waste streams and increased regulation.
In the infrastructure sector, population and metropolitan growth and increased government infrastructure expenditure has helped boost this area.
The industrial sector has meanwhile seen additional demand through increased landfill costs, product stewardship schemes and increased regulations. Civil infrastructure in Victoria and NSW continues to drive strong utilisation and earnings.
The resources sector has seen growth in LNG, iron ore and coal production, a greater focus on productivity and increased safety and environmental responsibilities.
Notable acquisitions over the years include Daniels Health, which covers the medical sector. Daniels Health continues to meet Toxfree’s financial expectations, up 13 per cent on the same time last year. The acquisition of Wanless also helped it with its Queensland expansion.
Toxfree has grown its e-waste recovery base through its HazPak systems and BluBox technologies , which allows it to safely handle hazardous waste.
The company forecasts the second half of FY18 to be stronger than the first, as existing contracts gain momentum in Darwin and soil remediation projects commence. New contracts with Inpex, FMG, Rusca Environmental Services (Shell Prelude) are also expected to gain momentum in the second half. The expansion of total waste management services to Daniels customers is also underway in Sydney and Melbourne.
Toxfree’s Daniel Montalto discusses the company’s newly established collection services in New South Wales and Victoria, providing a whole-of-life solution to waste management in Australia. Read more
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.”
Hazardous waste collection company Toxfree have been awarded two Glencore Coal Assets Australia sites in the NSW Total Waste Management Umbrella Agreement.
The contract will be supported by the company’s existing Hunter Valley based business units. Toxfree said it further complements their current service offering to the region.
The company will be tasked with the collection, transport, treatment & reporting of all waste streams across Ravensworth Operations and Tahmoor Colliery.
“We are delighted to partner with Glencore Coal Assets Australia and look forward to long and productive relationship,” the company said.
Established and listed on the Australian Securities Exchange (ASX) in 2000, Toxfree has grown through acquisitions, new green-field developments and the organic growth of their existing businesses.
In 2000, the company employed 20 people, and operated from two locations in Kwinana and Port Hedland.
Today Toxfree employs over 1600 people and provides national services from over 80 locations Australia wide.
Fleet-owning waste and recycling firm Toxfree has released its first half financial year results, citing an expected growth in the industrial, resources, health and infrastructure sectors.
In its report, the company noted those companies were expected to grow at a higher rate than the rest of the market, alongside a requirement for specialised technologies, intellectual property and operating licences providing high barriers to entry.
By 2021, the company said the total market is expected to grow by 12 per cent to $17.7Bn, with Toxfree’s target segments anticipated to grow at a higher rate of 15 per cent due to a number of market, environmental and regulatory drivers.
The report explains growth in the health waste sector continues to increase due to an ageing population and increased spending, while increased cost and regulation of landfill is driving the industrial waste sector.
Growth in liquified natural gas, iron ore and coal was attributed to the predicted increase in resources, while population and metropolitan growth will lead to increase government spending in infrastructure.
“Toxfree’s objective is to grow our market share from 11 per cent currently to 17 per cent by 2021 by focusing on our four target markets and moving to a leaders leadership position in each one,” the company wrote.
The areas included the industrial, resources, health and infrastructure waste sectors, construction, municipal and commercial and government waste.
The firm recorded a net profit down 54 per cent to $5.9 million, with much of the reduction related to costs involved in purchasing Worth Recycling and Daniels Health Australia.
A new body working to create a cohesive national vision for Australia’s waste management industry, the National Waste and Recycling Industry Council (NWRIC) has officially formed, following the first meeting of its executive in Sydney on February 13.
NWRIC has received support from Australia’s largest waste management companies – and has begun operations.
The Council will be empowered to begin its work thanks to the support of its national members – Alex Fraser Group, Cleanaway, J. J. Richards and Sons, Solo Resource Recovery, Suez, Toxfree, Remondis, ResourceCo and Veolia.
“The waste and recycling industry needs a national voice to advocate for a fair, sustainable and prosperous industry for all stakeholders,” said Phil Richards, Chairman of the NWRIC’s host association Board.
“Australia’s waste management industry is an essential service, and through the NWRIC, we will be asking the Commonwealth along with State Governments to support our initiatives to take the industry forward.”
The NWRIC will serve waste management enterprises by creating industry led policy. The Council will be led by newly appointed CEO Max Spedding, and supported by Secretariat manager Alex Serpo.
The NWRIC will work in close partnership with jurisdictional affiliates. This partnership will allow the Council to represent and canvas concerns from many of Australia’s 450 small and medium sized waste management enterprises. Together, state affiliates and the national office will coordinate to create, and advocate for, cohesive national policy.
From today, the Council will commence working to create, share and build support for policy positions which will move the industry forward. Initial areas of focus include better planning, a fair market, the national harmonisation of the regulations governing the industry and effective policing of standards.
The Council welcomes media enquiries, dialogue with waste management companies seeking involvement in the NWRIC and feedback from stakeholders.