Cheung Kong to buy EnviroWaste for $501m

Private Equity firm Ironbridge will successfully exit its six-year investment in waste management company EnviroWaste in a deal with Cheung Kong Infrastructure Holdings.

The Hong Kong investor has signed a sale and purchase agreement to buy EnviroWaste for $490 million, plus $11 million of assumed debt.

The $501 million price represents a multiple of about 10 times EnviroWaste’s ebitda for the year to June 30, 2012, and is well above expectations previously speculated by market watchers.

Ironbridge originally acquired EnviroWaste from Fulton Hogan in April 2007, paying $365 million for the asset.

The company expanded under Ironbridge’s ownership and doubled its ebitda over the period. However, interest payments on debt used to fund the acquisition resulted in big bottom line losses.

Most recent accounts showed bank debt was $195 million as at June 30, with shareholder loans of a further $215.9 million also counted as liabilities.

The company booked a loss of $18.97 million for the year ended June 2012 despite earnings before interest and tax came of $32.15 million, up from $25.4 million in 2011.

EnviroWaste chairman Kim Ellis thanked the Ironbridge team of Julian Knights, Kerry McIntosh and Chris Aughton for their contribution to the business over the past six years.

“EnviroWaste is well placed to continue to provide superior service to customers and to expand its operations under the ownership of CKI,” he says in a statement.

Cheung Kong Infrastructure Holdings (CKI) is listed on the Stock Exchange of Hong Kong and is a member of the Cheung Kong Group, which also includes, among others, Cheung Kong (Holdings) Ltd, Hutchison Whampoa Ltd and Power Assets Holdings Ltd. 

CKI’s other New Zealand assets include Wellington Electricity Lines, formerly owned by Vector.

4 · Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Post Comment

4 Comments & Questions

Commenter icon key: Subscriber Verified

A fine business sold for a fine price. Well done.

  • 0
  • 0

Some smelly business here. Last time I was in Hong Kong their "waste management" ethics were disgusting, with rubbish everywhere.

  • 0
  • 0

Well done on the sale. It's a shame it didn't end up on the NZX.

I hope the IRD goes after tax on the gain as there is no doubt any PE funds intention at the time of purchase is always to sell, in the short term, at a profit.

  • 0
  • 0

I thought the purcahse of NZ assets by the Chinese was always wrong (or does this only apply to land as this can be moved elsewhere...?)

  • 0
  • 0

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot


Sym Price Change
USD 0.7189 0.0011 0.15%
AUD 0.9156 0.0057 0.63%
EUR 0.6097 0.0022 0.36%
GBP 0.5427 0.0025 0.46%
HKD 5.6131 0.0098 0.17%
JPY 80.6240 0.3400 0.42%


Commodity Price Change Time
Gold Index 1301.2 -2.230 2017-10-16T00:
Oil Brent 57.6 0.410 2017-10-16T00:
Oil Nymex 52.1 0.700 2017-10-16T00:
Silver Index 17.3 -0.071 2017-10-16T00:


Symbol Open High Last %
NZX 50 8090.7 8094.6 8090.7 -0.13%
NASDAQ 6622.6 6632.5 6605.8 0.28%
DAX 13017.2 13026.5 12991.9 0.09%
DJI 22892.9 22960.1 22871.7 0.37%
FTSE 7535.4 7557.0 7535.4 -0.11%
HKSE 28662.0 28792.1 28476.4 0.76%
NI225 21155.2 21255.6 21155.2 0.47%
ASX 5846.8 5871.7 5846.8 0.37%