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

BABY STEPS FOR BELLAMY'S IN TURNAROUND

GREEN shoots are appearing in the Bellamy's Organic (ASX: BAL) business in the early days of its turnaround.

T...

HOW TO TAKE CONTROL OF YOUR CAREER THROUGH TRAINING

GIG economy, remote working, and freelance Friday are more than just buzz terms; our workforce is changing, and so...

LOSSES MOUNT AT SLATER AND GORDON

SLATER and Gordon's losses continue to mount following its disastrous entry in to the UK market. The compa...

NVC PLAYS A DIFFERENT GAME, AND WINS

AS its profits rise, National Veterinary Care's (ASX: NVL) focus on training over retail is proving to be a wi...

Related News

HOW TO TAKE CONTROL OF YOUR CAREER THROUGH TRAINING

GIG economy, remote working, and freelance Friday are more than just buzz terms; our workforce is changing, and so...

EVERYTHING YOU NEED TO KNOW ABOUT THE NATIONAL BROADBAND NETWORK

THE National Broadband Network (NBN) is more than an internet connection, it is an opportunity to transform your b...

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter