South Island waste company WasteCo is expanding its reach into Central Otago and Southland, with the purchase of three businesses in those regions.
The acquisition of the businesses of Cleanways Ltd and its related companies, Enviro South Ltd and Wastech Services (Central Otago) Ltd will add to WasteCo’s existing services in Nelson, Christchurch, Ashburton, Timaru, Oamaru, Dunedin, and Balclutha.
“When we listed on the New Zealand stock exchange last year we shared our growth strategy and goal of expanding across more of the South Island. With this acquisition, and the acquisition of Nelson-based Central Suction Cleaners earlier this year, we’re now seeing that growth strategy in action,” says WasteCo chair Shane Edmond.
The acquisition is expected to become unconditional at the end of this month. The purchase price of $7.35 million will be made up of $2.205 million in WasteCo shares and a $5.145 million cash settlement.
“We are especially pleased to have the support of Cleanways director Lloyd Philipps who will stay on with us as an advisor for the next two years,” Shane Edmond says.
“We’re also very pleased at the confidence shown by Cleanways shareholders wanting to be part of WasteCo’s future by taking a substantial part of the acquisition price in WasteCo shares,“ he says.
Cleanways and Enviro South are based in Invercargill and specialise in bulk liquid waste, providing a range of services across Southland; while Wastech Services is based in Cromwell and specialises in removing all bulk liquid and solid waste throughout Central Otago.
“These three businesses each have a strong customer base and offer a range of commercial, local body and private services. They’ll continue to operate from their current premises when they become part of WasteCo,” he says.
Since it was established in 2013, WasteCo has grown progressively and consistently throughout the South Island, adding new clients as well as new services – such as medical and quarantine waste treatment and disposal.
“Having successfully expanded our footprint to cover the South Island from top to bottom, we’re now focused on using this footprint as a launchpad to expand the range of services we offer. We want to offer the full range of WasteCo services from every one of our bases – existing and new,”dmond said.
“This is an exciting journey for WasteCo and we are really looking forward to being able to offer our customers so much more.”
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