Cleanaway Waste Management will acquire waste cooking oil gatherer and preprocessor Australian Eco Oils for $39 million.
Cleanaway, which is listed on the ASX, said on Thursday that it had agreed to pay 26.5 million Australian dollars for AEO. AEO is expected to generate A$6 million in annualized earnings before interest, taxes, depreciation, and amortization in fiscal 2024.
Managing Director and Cleanaway President Mark Schubert said the obtaining gave an appealing place of section into a new, contiguous market for the organisation.
“High-quality, traceable used cooking oil is becoming an increasingly important source of feedstock for the production of renewable fuels, including sustainable aviation fuels and renewable diesel,” Schubert said.
Cleanaway Waste Management has announced that it will acquire Australian Eco Oils in a move that, according to the company, provides an appealing entry point into the adjacent cooking oil collection and processing market.
The oils business is anticipated to earn approximately $6 million in annualized EBITDA profit in FY24.
Working all through NSW, Queensland and Victoria, the organisation works under the Scanline brand and claims the most exceptional assortment innovation, including compartments, drums and vacuum trucks, to guarantee a quick assortment of utilized cooking oil.
“The business will form part of our liquids and technical services strategic business alongside our leading grease trap business to expand our service offering to restaurants and other food service customers with more circular and low carbon solutions.”
“Subject to Australia adopting supportive regulations in line with many European and North American markets, we would look to buy back renewable fuels to accelerate our CO2 emissions reduction and be able to provide a circular solution to customers,” said Schubert.
The business is a pioneer of the circular economy because it has turned a problematic waste product into valuable new resources like stock feed and renewable fuels.