• Disciplined acquisition of a strategically aligned, complementary business
• Adds a stable and recurring earnings stream with attractive growth outlook
• Expected to deliver $12m in annual net cost synergies

Cleanaway Waste Management Ltd has agreed to acquire 100% of Contract Resources, a market leader specialising in catalyst handling, decontamination and chemical cleaning, for $377m. The acquisition is a disciplined, strategic move that adds a stable and recurring earnings stream with an attractive growth outlook, underpinned by long-term customer relationships and delivery of best-in-class, production-critical services. The transaction is expected to deliver approximately $12m in annual net cost synergies when combined with Cleanaway's Industrial & Waste Services (IWS) division, repositioning the business and creating a leading specialist provider of integrated, highly technical services to oil & gas, resources and industrial customers. The acquisition is forecast to deliver high-single digit EPS accretion post pro forma synergies in the first 12 months of ownership (while remaining EPS accretive pre-synergies) and deliver a double-digit IRR pre and post synergies. The acquisition will be fully debt funded, with Cleanaway's net debt to underlying EBITDA expected to be approximately 2.5x at completion, aligned with the company's commitment to maintaining an investment grade credit profile.

Contract Resources' standalone FY25F EBITDA is forecast to be approximately $52m and EBIT approximately $35m.