Cleanaway Waste Management (ASX:CWY) has entered into a binding Joint Venture agreement with ResourceCo Holdings to acquire a 50 per cent interest in their new Resource Recovery Facility in western Sydney.
The facility has been developed over the past three years and is licensed to receive up to 250 thousand tonnes of waste.
The purchase price for the 50 per cent interest comprises a $25 million payment at completion plus an earn out of up to a further $25 million payable in two installments over two years once the Facility generates agreed EBITDA targets.
The Joint Venture is part-financed by a $10 million loan facility from the Clean Energy Finance Corporation, with additional funding received from the New South Wales Environmental Trust.
Shares in Cleanaway Waste Management (ASX:CWY) closed 0.2 per cent lower to $1.73.