TRANSPACIFIC FINALISES LANDFILL ACQUISITION

Written on the 2 March 2015

TRANSPACIFIC FINALISES LANDFILL ACQUISITION

TRANSPACIFIC Industries Group Ltd (ASX:TPI) has finalised its purchase of the Melbourne Regional Landfill business from Boral Ltd.

The Brisbane-based waste management company agreed to buy the business for $150 million in December 2014, plus $15 million in site preparation and annual royalties.

The acquisition is expected to secure TPI's long term position in Melbourne and overall growth strategy by boosting the company's internalisation rates rather than delivering to third parties.

TPI will close its current landfill operations in Melbourne by FY16, with the enhanced cash flow anticipated to be earnings per share accretive in FY17.

Transpacific CEO Robert Boucher says the transaction with Boral is about increasing returns by processing more waste at the company's own sites.

"For Boral, landfill is not a core business, whereas Transpacific needs strategic landfill capacity in order to increase our internalisation rates," Boucher says.

"This partnership will also allow us the potential to evaluate future landfill opportunities with Boral in other Australian states, so this is a true win-win situation for both sets of shareholders."

As a result of the deal, TPI's internalisation rate in the city is expected to lift from 25 per cent to 65 per cent.

*Please note: Transpacific Industries Group (ASX:TPI) completed a changed of name to Cleanaway Waste Management (ASX:CWY) on July 1, 2016

 

Latest News

SURFSTITCH GOES UNDER AS LEGAL COSTS FINALLY TAKE THEIR TOLL

SurfStitch (ASX: SRF) has entered voluntary administration, impacted by a series of protracted legal entanglements...

SANTOS CLAWS BACK LOSS DESPITE HEAVY IMPAIRMENT CHARGES

SANTOS Limited (ASX: STO) has reported a loss of $640 million for the first six months of 2017, a huge reduction o...

BOARD SHAKEUP AND UNDERPERORMING ASSETS IMPACT EUREKA RESULTS

EUREKA Group's (ASX: EGH) FY17 financial performance has suffered at the hands of a board reshuffle and underp...

NINE POSTS $203 MILLION LOSS ON FREE TO AIR TV WRITEDOWNS

NINE Entertainment Co (ASX: NEC) reported a $203.4 million loss for FY17 thanks to $327.1 million worth of write-d...

Related News

ACCC CLEARS THE WAY FOR BILLIONAIRE INVESTORS MURDOCH AND GORDON TO BUY TEN NETWORK

THE COMPETITION watchdog has cleared a proposed takeover of the Ten Network by billionaire investors Lachlan Murdo...

COMMBANK FACES 'VERY LARGE' CLASS ACTION LAW SUIT OVER MONEY LAUNDERING SCANDAL

THE Commonwealth Bank is facing a potential massive class action from shareholders because of a big drop in its sh...

REPORTING SEASON WRAP: WEDNESDAY HIGHLIGHTS

The A2 Milk Company (ASX:A2M) has almost tripled its profits and increased total revenue by 56 per cent off the ba...

THE MOTHER OF THREE WHO HAS SHARK TANK'S ANDREW BANKS AND STEVE BAXTER FIGHTING TO INVEST WITH HER

NOT every entrepreneur on Shark Tank Australia convinces the 'sharks' that their business is worthy of inv...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter