Bingo Industries has announced it will acquire New South Wales recycling and waste management business Dial A Dump Industries (DADI) for $577.5 million.
DADI is a fully integrated recycling and waste management business in NSW with operations across the waste value chain from collections to recycling, landfill and recycled product sales. In FY18, DADI generated revenue of $198.2 million and EBITDA of $51.6 million.
The acquisition will comprise $377.5 million in cash and $200 million in Bingo shares to be issued to the vendors of DADI at completion of the acquisition.
DADI’s assets to be acquired through the acquisition include Genesis Transfer Station in Alexandria; Genesis Waste Facility in Eastern Creek; and collections fleet of 55 vehicles.
The acquisition includes an option for Bingo to retain up to a further 27 hectares of expansion land adjacent to the Eastern Creek site for the payment of a further $98 million over the next two years and an option to acquire properties at Alexandria for $63.6 million over the next five years.
The purchase does not include DADI’s proposed Next Generation Energy from Waste Facility and associated land at Eastern Creek.
Separate to the acquisition, Bingo will acquire two freehold properties, one located in Melbourne and one in Sydney (Bingo currently rents the Sydney property).
Dial A Dump founder Ian Malouf, the largest vendor of DADI will join the Bingo board with a shareholding in Bingo of up to 12 per cent following completion of the acquisition.
Bingo Industries CEO Daniel Tartak said the DADI site at Eastern Creek provides Bingo with an opportunity to transform waste recovery and recycling in Greater Sydney through the development of a Recycling Ecology Park.
“The Recycling Ecology Park, once completed, will considerably broaden our range of processed end products as we work towards building a circular economy. By seeking alternative waste solutions, we can enhance recovery rates, consistent with Bingo’s strategic intent of diverting waste from landfill through recycling led solutions,” Tartak said.
Dial A Dump founder Ian Malouf said: “We have a lot of respect for Bingo and how they have built their business. Bringing together these two Australian companies makes complete sense. I fully support Daniel Tartak the CEO and Bingo’s growth strategy, particularly the vision of a master site at Eastern Creek that can process all waste types. With the infrastructure program in NSW and the new waste levy in Queensland, the market is only going to grow and I’m excited to be on board for the journey.”
The acquisition remains subject to customary closing conditions including ACCC informal merger clearance.
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