Cleanaway to buy rival Tox Free Solutions in a $671 million takeover

Date: 2017-12-11   Author: Shikha Sinha  Category: #market

Cleanaway to buy rival Tox Free Solutions in a $671 million takeover

Cleanaway, a leading player across waste management and recycling industry, has reportedly struck a million-dollar agreement to buy its minority rival Tox Free Solutions. According to reports, Cleanaway is expected to offer USD 3.425 per share in cash to Tox, valuing it to over USD 671 million on a diluted basis.

Reports further claim that, to pay for the deal, Cleanaway will tap investors for USD 590 million in its equity raising, which is supposed to be conducted in the month of December.

Under the transaction, sources claim Cleanaway to gain 29 licensed facilities and a fleet of collection vehicles exceeding 900 in number, from Tox Free’s national network.

Regarding the acquisition, experts predict that the move will help Cleanaway consolidate its position as Australia’s leading company in waste management, by effectively re-weighing and balancing the region’s integrated waste model. Sources further revealed that the deal would deliver around USD 35 million in annual synergies.

Cleanaway CEO and MD Vik Bansal, was quoted saying that, acquiring Tox Free will help them expand their business and create operating leverage as the business models of both the companies effectively complement and integrate with each other.

In the meantime, experts speculate this acquisition to add some valued infrastructure assets across the country that would further help accelerate the implementation of the Footprint 2025 strategy. The deal is further expected to be a leading contributor in healthcare waste management services, which includes transport, collection, and treatment of sharps and clinical related wastes.

Toxfree’s board members have unanimously declared this deal to be a “compelling offer” and in the best interests of the company’s shareholders.

According to reports, Cleanaway’s current shares are in a trading halt for a period of 2-3 days, even as the company further sees the deal closing in by February 2018 calendar year.



About Author


Shikha Sinha linkdin-boxtwitter

Shikha Sinha

Shikha currently manages the content team at AlgosOnline. An electrical & electronics engineer by education, she has prior experience in content & technology writing, content marketing, market research, and business development domains. Her other interests inc...

Read More

Post Recommendents

Omnichannel Customer Engagement Market Growth By Top Companies with Forecast 2027

Author: Partha Ray

Omnichannel Customer Engagement market report outline: major development trends, restraints, CAGR, remuneration forecast, product varieties and their application scope, competitive terrain, COVID-19 impact analysis.

The report on Omnicha...


Leak Detection Systems Market 2020 Emerging Trend and Advancement Outlook 2025

Author: Sachin Pashte

MarketStudyReport.com adds Global Leak Detection Systems Market research focusing on the major drivers and restraints for the key players. It also provides analysis of the market share, segmentation, revenue forecasts and geographic regions of the...


Pacemaker Market with Future Prospects, Key Player SWOT Analysis and Forecast To 2025

Author: Sachin Pashte

Market Study Report adds New Global Pacemaker Market research providing in-depth information about market overview, top vendors, Key market highlights, product types, market drivers, challenges, trends, Pacemaker industry landscape, size and forec...