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Acquisitions in the spotlight WASTE MANAGEMENT REVIEW TALKS TO SOME OF AUSTRALIA’S LARGEST WASTE MANAGEMENT COMPANIES ABOUT THE ROLE OF SCALABILITY IN THE FUTURE OF THE WASTE SECTOR. Bingo Industries, through the acquisition of Dial A Dump Industries, has set its sites on building a Resource Ecology Park in the middle of western Sydney.
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ver the past few years, Australia’s waste management giants have looked to becoming vertically integrated businesses. One of Australia’s largest waste management companies, Cleanaway acquired health and waste disposal giant Toxfree in 2018. Most recently, building and demolition (B&D) market leader Bingo Industries acquired Dial A Dump Industries (DADI) and set its sights on building a resource recovery park as part of the acquisition. Cleanaway has also looked to potentially take on SKM Recycling after acquiring its debt for $60 million. Waste Management Review explores the role of scalability and vertically integrated business models in the waste sector’s future.
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BINGO TAKES IT TO THE NEXT LEVEL Daniel Tartak, Bingo Industries Managing Director, believes that further market consolidation will support the waste industry during a challenging phase. “The industry is still very fragmented. We’ve seen consolidation in the last few years, but there still needs to be some more consolidation over the sector across the country,” Daniel tells Waste Management Review. “It still remains very competitive, even following these acquisitions [DADI and Toxfree]. I don’t think much is changing in the industry.” Daniel says Bingo’s DADI acquisition allows the company to compete with the multinationals on a greater scale with vertically integrated assets. He
says it comes at a critical time for the sector where recycling infrastructure investment is needed at a greater level. “There’s many small players who don’t invest into their business and the sector, and right now we need that,” he says. “We’ve done it to a large extent over the last few years. We’ve poured almost $1 billion into acquisitions and key infrastructure so as some of the smaller players start getting amalgamated or consolidated you will see more investment.” Bingo Industries agreed to divest its recycling facility in Banksmeadow, NSW to ease ACCC competition concerns regarding its $578 million acquisition of DADI. The ACCC required Bingo to divest the facility to maintain competition for B&D
