Aussie waste management and skip hire in Northern Beaches Bingo Industries acquired Dial A Dump Industries for $578m, a move that is expected to bring up the company to the level of the heavyweight waste management players, like international companies Veolia and Suez, in a business sector where competitiveness and scale reign supreme.
According to Bingo CEO Daniel Tartak, the acquisition was a very important one, due to their rivals in the sector expanding as they are. He says that scale and size are key if a waste management company wants to compete at a national level.
Dial A Dump’s founder, Ian Malouf, will get a 12% stake in the enlarged Bingo, which is going for a value of $2.54 a share, in order to raise the $425 million target for the acquisition. Malouf will also be a part of the Bingo board.
The company was offering shareholders a new share for every 2.48 shares they owned in an underwritten pro-rata accelerated and non-renounceable entitlement offer. Mr. Malouf and a handful of Dial A Dump’s minority shareholders will receive $378 million in cash and an additional $200 million worth of Bingo shares.
Bingo is also working on acquiring the Genesis Transfer Station in Alexandria in Sydney’s inner city, and its collections fleet comprised of 55 vehicles. The Genesis Waste Facility at Eastern Creek is a major site covering 55 hectares.
According to Tartak, the waste management and skip hire in Northern Beaches company has done the math, and it expects synergies of $15 million by putting these two new businesses together. Bingo has been hard at work acquiring other companies in its sector ever since it was listed on the ASX in May of 2017, but this new purchase is the biggest one to date.
Tartak adds that their acquisition of Dial A Dump is an opportunity for them to transform the waste recovery and recycling industry in Sydney. He says that they will accomplish this via a development it dubs a “Recycling Ecology Park”, a centralized site for handling recycling, processing, distribution and landfill roles, which he explains will give economic benefits.
Recently, Bingo also acquired NRG, a building and demolition recycling and waste management business that has operations in NSW and Victoria, handling brands like DATS Environment Services, Melbourne Recycling Centres and Harpers Bin Hires brands in a $51m deal.