• Disciplined acquisition of a strategically aligned, market leader in production-critical technical services for the oil & gas industry
• Adds a stable, recurring and growing earnings stream underpinned by long-term customer relationships
• Accelerates Cleanaway's decommissioning, decontamination and remediation (DD&R) growth strategy

Cleanaway Waste Management Ltd has announced the acquisition of 100% of the shares of Contract Resources Group Pty Limited, a specialist provider of catalyst handling, decontamination, chemical cleaning and related services, for an enterprise value of $377 million from shareholders, including funds managed by SCF Partners, Inc. and Viburnum Funds Pty Limited. The acquisition is a strategic step in advancing Cleanaway's Blueprint 2030 strategy, as Contract Resources is a natural fit with Cleanaway, given its market leadership, deep sector expertise, and stable recurring earnings stream. Contract Resources has long-standing relationships with tier 1 oil & gas customers and an attractive growth outlook, which aligns with Cleanaway's strategic vision for industrial services. The acquisition is expected to deliver approximately $12 million in annual net cost synergies when combined with Cleanaway's Industrial Waste Services (IWS) business, repositioning the combined entity as a leading specialist provider of integrated technical services to oil & gas, resources and industrial customers, and a platform for growth. In the first 12 months of ownership, the acquisition is forecast to deliver high-single digit EPSA accretion post pro forma synergies and a double-digit IRR pre and post synergies. The transaction will be fully debt funded, with net debt to underlying EBITDA expected to be ~2.5x at completion, aligned with Cleanaway's commitment to maintaining an investment grade credit rating.

Contract Resources' FY25 EBITDA is forecast to be approximately $52 million and EBIT of approximately $35 million. Net cost synergies are expected to be approximately $12 million, with full benefits to be realised from FY28 following a two-year integration period.