KEY POINTS:
Another New Zealand business has been bought by Australian private equity, with Ironbridge Capital purchasing the waste management company EnviroWaste from Fulton Hogan.
Ironbridge, a Sydney-based private equity firm, said yesterday that it was the second investment for the Ironbridge Fund II, which was recently closed with A$1.05 billion of commitments.
It is understood that Ironbridge acquired EnviroWaste for $355 million, 12 times the trading profits of EnviroWaste, and in line with the sale of Waste Management, estimated to be 11.5 times its trading profits.
Ironbridge Capital New Zealand operating partner Kerry McIntosh said it was attracted to EnviroWaste's portfolio of newly developed regional landfill assets and strong cash-flow profile.
"We also believe that EnviroWaste has excellent growth opportunities, especially in the collections businesses and in working in partnership with local councils to develop advanced waste solutions."
EnviroWaste is the latest in a string of New Zealand assets to have been snapped up by Australian private equity firms, which are flush with funds from Australia's compulsory superannuation levy.
Ironbridge has been aggressively seeking businesses with strong market positions and growth targets in Australia and New Zealand.
It acquired 3M's branded pharmaceuticals business in the Asia Pacific and Africa for US$349 million last month.
EnviroWaste is a waste management firm that operates around New Zealand either on a stand-alone basis or via joint ventures.
Ironbridge was advised by ABN Amro, Russell McVeagh, Clayton Utz, Crescendo and Ernst & Young.
