Cleanaway Waste Management Limited has reported entry into an agreement to acquire Suez R&R Australia for $2.52 Billion. The deal is subject to finance on terms satisfactory to purchaser and other conditions. Subject to customary closing conditions, Cleanaway proposes to raise equity to partially fund the transaction with additional debt facilities. All equity raising for the Suez R&R Australia Acquisition is intended to be taken by way of a pro rata entitlement offer to Cleanaway shareholder at time of launch. Cleanaway Executive Chairman, Mark Chellew said, “Suez’s Australian Recycling and Recovery business has a high-quality network of assets across Australia that will accelerate the implementation of our Footprint 2025 strategy. The acquisition will deliver superior scale and increased operating leverage. We look forward to more than 2,000 of Suez’s Australian employees joining the Cleanaway team in due course.” Cleanaway Chief Operating Officer, Brendan Gill said, “Importantly, there is also strong alignment of operating approaches. The transaction is expected to bring together two highly complementary businesses and be strongly accretive to earnings per share when the integration is completed.
Suez R&R Australia operates a national footprint of strategically located prized infrastructure assets, including a workforce of more than 2,000 employees, 6 operating landfills including a hazardous waste landfill, 59 collection and depot facilities, 8 organics processing facilities and 2 medical waste facilities, and a fleet of more than 1,000 vehicles.