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Cleanaway’s growth spurt following failed takeover

Manufacturing News




Waste handling group Cleanaway has experienced strong growth following its partially failed $2.5 billion takeover of the Australian operations of the Suez company.

While the takeover did not go ahead, Cleanaway emerged with ownership of Suez’s Sydney Resource Network assets, which have been integrated into the business helping boost net revenue in the latest year by 18.4 percent to $2.6 billion.

An economic recovery, new customer contracts, pandemic related clinical waste and higher commodity revenue also boosted sales in FY22 as well as the acquisitions.

Underlying EBITDA of $581.6 million was 8.7 percent higher than the previous corresponding period, partly offset by lower volumes from the company’s New Chum landfill in Sydney which flooded during the year.

Net cash from operations rose by $41.9 million to $466.3 million.

Cleanaway also announced plans to raise $400 million in capital – $350 million in a share placement and $50 million in a share purchase plan – to fund execution of its BluePrint 2030 to grow the company.

This includes the $168.5 million acquisition of Sydney composting facility Global Renewables Holdings that processes organics from household waste – the waste is already delivered to GRH by Cleanaway making it the logical owner of the business.

Cleanaway intends to spend up to $45 million on improving GRH’s Eastern Creek, Sydney facility (pictured).

Cleanaway CEO Mark Schubert said that during the year the company had refreshed its strategy to meet opportunities emerging from a transition to a high circularity and low carbon economy.

“In a year of significant challenges posed by a global pandemic, natural disasters, supply chain disruptions and emerging inflation, Cleanaway delivered a strong financial performance.

“…Lockdowns impacted revenues and efficient operations and widespread community infections reduced labour availability and increased pandemic leave costs.”

Picture: Global Renewables Holdings/Eastern Creek

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