AUCKLAND, NZ: Goodwood Capital Limited (NZX: GWC) has reached agreement to acquire 100% of WasteCo Holdings NZ Limited, a diversified waste, refuse and industrial services business with operations in Christchurch, Ashburton, Timaru, Oamaru, Dunedin and Balclutha.
The business operations of WasteCo comprise:
* Environmental services, which comprise the following operations:
– Waste collection via front load bins, hook bins, skip bins and wheelie bins from both commercial and private customers.
– A large gantry collection operation in Christchurch.
– Road sweeping for Councils and commercial customers. WasteCo operates an extensive sweeping operation in the South Island.
– Waste sorting and diversion. WasteCo operates a 3,600 square metre dedicated sorting facility in Christchurch with a strong focus on diversion from landfill. WasteCo is currently achieving global diversion in excess of 50% of waste away from the landfill.
– WasteCo has recently implemented a new specialised facility for the collection and treatment of medical and quarantine waste.
* Industrial services, which comprise the following operations:
– High pressure water blasting, urgent spill response services, septic tank cleaning and portaloos. These services are offered on a 24/7/365 basis. WasteCo is one of the largest providers of industrial services in the South Island.
– Port services. WasteCo provides maintenance, cleaning and auxiliary services to several Ports and shipping companies in the South Island.
– Training services. WasteCo provides internal and external training courses to its own staff and to third party organisations.
WasteCo commenced its business operations in 2013 and has continued to grow progressively and consistently since its inception.
The unaudited results for FY 22 (31 March year) are anticipated to comprise consolidated revenues in excess of $19 million (FY21: $10.9 million), and EBITDA in excess of $4 million (FY21: $2.8 million).
The transaction agreed between the parties values WasteCo at $31 million, whilst the listed shell of GWC has been valued at circa $1.2 million (post the capitalisation of the existing indebtedness of GWC to Mounterowen Limited).
Prior to the transaction completing (and the capitalisation of the Mounterowen indebtedness), GWC’s share capital will be consolidated on a circa 2.5 to one basis, such that the total number of shares on issue in GWC will be consolidated from 33,409,809 shares to approximately 13,360,000 shares after completion of the consolidation.
All references in this announcement to the quantum of new GWC shares to be issued, are provided on an after consolidation basis.
After completion of the transaction, the WasteCo shareholders will own approximately 80% of the ordinary shares in GWC.
80% of the new GWC shares to be issued to the existing WasteCo shareholders will be placed in escrow (with restrictions on trading) up until the date after GWC announces its preliminary result to the market for the financial year ending 31 March 2023.