WasteCo, the South Island’s leading waste company, 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 (2003) Ltd and
its related companies, Enviro South (2015) 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,” Shane Edmond
says.
“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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