Bingo Industries acquires recycling facilities through $120m capital raise

Company News

by Kathy Skantzos

Bingo Industries (ASX:BIN) has acquired building and demolition recycling and waste management business National Recycling Group and Patons Lane Recycling Centre and Landfill, supporting its growth strategy.

The acquisitions will be funded through a $120 million entitlement offer priced at $1.90 per share.

The acquisition price for National Recycling Group is a total of $51.1 million comprising $37.7 million for the operating business plus $13.4 million for two freehold properties, and the price for Patons Lane is $90 million structured over three payments until July 2019.

New South Wales-based National Recycling Group has an estimated FY2018 EBITDA for $6.5 million with expected synergies of $6 million over the next 12 months.

Paton’s lane, based in Western Sydney, is expected to be open in FY2020, with forecast EBITDA of $20 million before synergies.

Shares in Bingo Industries (ASX:BIN) are on a trading halt, last trading at $2.07.

Kathy Skantzos

Finance News Network
Kathy presents the Market Outlook and ASX company news. She joined FNN in September 2017. She has been in print and online journalism for over 9 years. She also worked in corporate communications.