- Cleanaway has bought SKM Recycling Group’s assets for $66 million
- Cleanaway will gain five recycling properties
- The acquisition supports the company’s footprint 2025 strategy of providing Australia with the right tools to recycle effectively
- Cleanaway’s share price is up 6.25 per cent, with shares closing at 2.04 cents apiece
Cleanaway Waste Management has won the bid for the acquisition of SKM Recycling Group’s assets.
The acquisition follows the public sale process conducted by KordaMentha, who were appointed Receivers and Managers of SKM by Cleanaway.
SKM Recycling Group is a Victoria-based company that offers recycling services to households, businesses and departments.
Its sustainability measures have helped councils and businesses meet their waste reduction targets.
As part of the sale, Cleanaway will acquire the properties, plant, equipment and certain other assets of SKM for approximately $66 million.
“The recycling sector is undergoing significant structural changes with a move to increase recycling within Australia to support a transition towards a circular economy,” Cleanaway CEO and Managing Director Vik Bansal said.
This agreement will provide Cleanaway with a network of five recycling sites, including three material recovery facilities, an advanced plastic sorting facility in Victoria and a material recovery facility in Tasmania.
Additionally, acquired assets include.
The company is pleased by the progress made in clearing waste stockpiles from the sites and bringing them to required safety and operational standards.
Since the fires in Victoria and various reports identifying large-scale waste stockpiles to be dangerous, the Government has committed to reducing the risks of fires at these facilities.
“I would like to acknowledge and thank the Victorian government who helped expedite the clearing of waste stockpiles and the return to operations at the Laverton North site,” Vik continued.
This acquisition strongly aligns with Cleanaway’s Footprint 2025 strategy.
This strategy was launched in 2017 and is a way to ensure Australia has the right infrastructure to support communities in managing their waste while continuing to improve resource recovery.
Cleanaway is working towards recovering more from waste and process more recyclables to ensure the least amount of waste is left to be disposed of.
Completion of the acquisition is expected to occur by the end of this month.
Cleanaway’s share price is up 6.25 per cent, with shares closing at 2.04 cents apiece.