Cleanaway Waste Management (ASX:CWY) Acquires Contract Resources
Strategic Acquisition
Cleanaway Waste Management Limited (ASX:CWY) has agreed to acquire 100% of Contract Resources Group Pty Limited for an enterprise value of $377 million. This acquisition adds a stable and growing earnings stream with long-term customer relationships in the oil and gas sector.
Financial Impact
The deal is expected to deliver approximately $12 million in annual net cost synergies when combined with Cleanaway’s Industrial Waste Services. Contract Resources’ FY25 EBITDA is forecasted at $52 million, with high-single digit EPS accretion post synergies in the first 12 months.
Strategic Growth
The acquisition accelerates Cleanaway’s decommissioning, decontamination, and remediation (DD&R) growth strategy by expanding the addressable market and leveraging customer relationships. It positions Cleanaway as a leading specialist provider of integrated technical services to oil and gas, resources, and industrial customers.
Executive Comments
Managing Director and CEO Mark Schubert stated, “Acquiring Contract Resources is a strategic step in advancing our Blueprint 2030 strategy. Contract Resources is a natural fit with Cleanaway, given its market leadership, deep sector expertise, and stable recurring earnings stream.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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