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.


Latest News

Q & A WITH FACEBOOK GURU ANDY MCKEON AS HE JOINS AUSTRALIAN SOFTWARE COMPANY LIVETILES

HE was creative director at Apple under the legendary Steve Jobs, and is now a senior Facebook executive. In his n...

EAST COAST PROPERTY BOOM BUILDS PROFITS FOR BRICKWORKS

AUSTRALIA'S residential property boom has helped drive a sharp rise in first half earnings for Brickworks (ASX: B...

COLLINS SUPERSIZES IN EUROPE WITH PURCHASE OF 16 KFC RESTAURANTS IN THE NETHERLANDS

COLLINS Foods (ASX:CKF) has stepped up its European expansion through the purchase of 16 KFC restaurants in the Ne...

CSIRO HELPS DEVELOP AUSTRALIAN PHARMA COMPANY FROM $10 MILLION TO $305 MILLION

GOVERNMENT backed scientists have helped multiply the market value of a previously small Australian pharmaceutical...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter