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.