Cleanaway buys Citywide Service Solutions for $110m

Waste handling group Cleanaway Waste Management will acquire the waste and recycling business and assets of Citywide Service Solutions Pty Ltd for $110 million.

At the same time Cleanaway will enter into a 35-year lease for the waste transfer station located at 391-395 Dynon Road in West Melbourne.

Citywide Waste provides waste management services to 1,500 municipal, commercial, and industrial customers in Melbourne, including Melbourne City Council.

Citywide also operates the Dynon Road transfer station, Victoria’s second largest waste transfer station.

Annually, the transfer station receives over 200,000 tonnes of waste and recycling material.

Cleanaway CEO & Managing Director Mark Schubert said: “This transaction represents an attractive opportunity to expand our Solid Waste Services business in metropolitan Melbourne.

“Integrating Citywide Waste into our network is expected to deliver valuable efficiencies, while facilitating growth through the broadening of our municipal and C&I collections capabilities.”

As part of the transaction, Cleanaway has committed to redevelop the Dynon Road waste transfer station into a larger, efficient, modern post collections facility.

This is expected to cost approximately $35 million with an additional $10 million contribution from the City of Melbourne over the first four
years of Cleanaway’s ownership.

The re-development of Dynon Road will almost double its current operating capacity, supporting future volume growth.

“Securing this site in inner-city Melbourne provides a strategic position in the densely populated Melbourne metropolitan area and aligns with our approach of using M&A to accelerate the delivery of our BluePrint 2030 strategy.”

Citywide Waste generated EBITDA of $10.7 million and EBIT of $6.4 million in the twelve-months ending February 2024.

Picture: Citywide Service Solutions