Remondis Expands in Australia with $230m Acquisition

10 July 2012 Remondis Australia - a part of German water and environmental company Remondis - has acquired 100% of the assets of Australian waste management company Thiess Waste Management Services. The acquisition was made from Australian construction company Leighton Holdings (ASA: LEI) and Remondis said that it has extended its market presence in Australia and placed it among the top five waste management companies in the country. Thiess Waste Management's service portfolio includes the operation of transfer stations, landfills, logistics depots and recycling facilities in Queensland, New South Wales and Victoria. Thiess generates sales of 230 million AUD and has 600 employees. According to Leighton Holdings the total purchase price was $218 million and the sale is subject to certain conditions, including novation of major customer contracts. The company added that the purchase price represents EBITDA and EBIT multiples of approximately six and 10 times respectively, which are in line with recent market precedents. Remondis has received all necessary regulatory approvals to complete the transaction including from the Foreign Investment Review Board and the Australian Competition and Consumer Authority and completion is expected to occur during the current financial year. J.P.Morgan acted as sole financial adviser and Freehills and McCullough Robertson acted as legal advisers on the sale. "Together with the disposal of HWE last year, this sale represents approximately $1 billion recapitalisation of the business," explained Hamish Tyrwhitt, Leighton Holdings chief executive. "The sale is part of our announced program to recycle capital from non-core into core assets. You can expect to see further divestments as we review the business and redirect capital into activities where the Leighton group excels and where returns can be enhanced," he added. Read More Viridor Expands in the North with Acquisition of JWT Viridor - a part of the Pennon group (LSE: PNN) has completed the acquisition of Manchester based JWT Holdings (trading as JWT Waste Services) - a specialist recycling and collection business based in Atherton, Greater Manchester. E.On Ends Waste to Energy Business Sale Following Low Bids Following the receipt of a number of offers that it deemed inadequate, German utility E.On (EOAN.DE) has ended the sale process for its waste to energy business. Australian Waste Industry Losing Skills to Mining Georgina Davies argues that the Australian waste and recycling industry is in danger of falling into a skills shortage as it haemorrhages skilled workers to the cash rich mining industry. Free Magazine Subscription Free Email Newsletter