WAM unveils Aussie expansion

The company says it is buying a Brisbane company, Barkoola Environmental, for $15.4 million, and Hines Waste Technology of Melbourne for $12.8 million.

"Both business are involved in the collection and treatment of liquid and solid waste streams including the recycling of waste oil," says Waste Management.

"They are significant players in their respective markets. Each operate "state of the art" treatment facilities, licensed by the state Environmental Protection Agencies, to process and safely dispose of a range of waste streams including grease trap waste and oily waters."

Both companies have been operating for around five years and have combined revenues of some $17 million. The $28.2 million purchase price includes $13 million for goodwill.

Funding for the Hines acquisition will be funded by debt while the Barkoola transaction could be by debt or the issue of WAM shares, although the company says it's not anticipated the share option will be taken up.

Waste Management boss Kim Ellis says the purchases will provide a foundation for developing the company in Australia.

"They meet the criteria that we outlined at the annual meeting and we have confidence in the combined management teams ability to continue to grow these businesses and identify new opportunities."

The new businesses are forecast to contribute around $4.8 million in earnings before interest, tax, depreciation and amortisation in the first year of operation.

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