Cleanaway Waste Management (CWY) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition aligns with Blueprint 2030 strategy, accelerating expansion into integrated, higher-margin technical and industrial services, especially in decommissioning, decontamination, and remediation (DD&R) for oil, gas, and industrial sectors.

• Contract Resources brings stable, recurring earnings, long-term tier-one customer relationships, and a strong reputation in catalyst handling, chemical cleaning, and technical services across Australia, New Zealand, and the Middle East.

• The deal expands the addressable market and enhances the value proposition, particularly in hazardous waste management and DD&R opportunities.

• Enables cross-selling of waste management solutions to Contract Resources’ established customer network, with new access to major oil and gas clients.

• Combination creates a leading specialist provider of integrated technical services, strengthening competitive position and supporting long-term growth.

Financial terms and conditions

• Purchase price is AUD 377 million (enterprise value), fully debt funded, representing a 7.3x EV/FY25F EBITDA pre-synergies and 5.9x post-synergies.

• Standalone FY25 EBITDA forecast is approximately AUD 52 million, with EBIT of AUD 35 million; customer contract amortization of AUD 10 million per annum.

• Net debt to underlying EBITDA expected to be ~2.5x at completion, maintaining investment grade credit profile and clear deleveraging pathway.

• Transaction and integration costs of AUD 24 million will be treated as underlying adjustments over FY25–FY27.

• Expected to deliver high single-digit EPSA accretion post-synergies in the first 12 months and double-digit IRR both pre- and post-synergies.

Synergies and expected cost savings

• Annual net cost synergies of approximately AUD 12 million anticipated, mainly from admin/support, leadership alignment, and procurement efficiencies, with full benefits from FY28 after a two-year integration period.

• Synergies primarily from combining with Cleanaway's IWS and operational efficiencies.

• No revenue or internalisation synergies included in initial estimates, presenting further upside potential.