AUCKLAND, NEW ZEALAND: WasteCo Group Limited (NZX: WCO), the New Zealand-based waste management company, has announced that it has agreed to buy the assets and business of three waste businesses in Southland and Central Otago for $7.35 million.
The businesses are Cleanways (2003) Limited and Enviro South (2015) Limited, which are based in Invercargill and specialise in bulk liquid waste services, and Wastech Services (Central Otago) Limited, which is based in Cromwell and specialises in bulk liquid and solid waste services.
The acquisition will expand WasteCo Group’s presence and capabilities in the South Island, where it already operates in Dunedin, Queenstown and Wanaka. The company said that the acquisition will also provide synergies and efficiencies with its existing operations and enhance its service offerings to customers.
The purchase price will be partly paid in shares and partly in cash. WasteCo Group will issue 31.85 million new shares to the shareholders of Cleanways, valued at $2.205 million, and pay the balance of $5.145 million in cash on settlement.
The acquisition is subject to certain conditions, including the acceptance of WasteCo Group’s offer of employment by a minimum number of existing employees of the businesses, and the acknowledgments from major customers and suppliers. The conditions are expected to be satisfied by 29 May 2023.
The settlement of the acquisition is scheduled for 1 June 2023.
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