Macquarie Buys Australian Waste Firm Bingo for $1.76 Billion

Macquarie Group Ltd.’s infrastructure unit agreed to buy Bingo Industries Ltd. for A$2.26 billion ($1.76 billion), an Australian waste-management company that has reported a surge in earnings in recent years.

Bingo shareholders can choose either A$3.45 cash a share, or a mix of cash and equity in the newly acquired business, the company said in a statement Tuesday. The stock jumped 6.4% to A$3.40 in afternoon trading in Sydney on Tuesday, having closed at A$3.20 on Monday. Bingo directors unanimously recommended the deal.

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With origins as a family-owned dumpster business in western Sydney, Bingo now operates the largest network of recycling and resource recovery centers in the states of New South Wales and Victoria, according to the company’s website. Bingo’s net income in the year ending June 2020 tripled to A$66 million, according to data compiled by Bloomberg.

The takeover isn’t Macquarie Infrastructure and Real Assets’ first in the waste-management industry. Its previous investments include GFL Environmental Inc. one of North America’s largest collectors, and Wheelabrator Technologies Inc., which converts municipal waste into energy in the U.S.

Bingo stands to benefit from a growing public focus on recycling that has resulted in a new set of market structures across Australia. Last year, Chief Executive Officer Daniel Tartak told investors he expected an immediate effect from a shift in policies that propose to almost double landfill levies in Australia’s second-most populous state over three years.

“We’ve invested more than A$100 million over the past three years in the acquisition and development of recycling assets in anticipation of many of the initiatives outlined in this plan,” Tartak said at that time.

Bingo shareholders opting to receive cash and equity will also be eligible for a special dividend if the company hits certain profit targets in the year ending June 2024, according to the statement. They are expected to vote on the proposal in July.

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