Ironbridge’s EnviroWaste could fetch healthy price

Thiess Waste Management's new owner is German water and environmental service company Remondis. The firm paid 10x EBIT and 6x EBITDA for Thiess, which could bode well for EnviroWaste's prospects on the market.

EnviroWaste, which is undergoing a strategic review by Macquarie Group, is targeting a valuation of $400-500 million. "There's no formal valuation but that's certainly what we'll be seeking," the company's chairman, Kim Ellis, told Business Day, adding that an official auction has not yet been initiated.

Ironbridge, which paid just $365 million for the business in 2006, has denied rumors that it was in advanced talks about a deal with Japan's Orix Corporation.

According to Ellis, the sale is being looked into because the Ironbridge has owned EnviroWaste longer than the typical five-year holding period for private equity investors.

Ironbridge will also want to shore up another successful exit because it is currently targeting between A$500 million and A$1 billion for its third fund. It recently made its last investment out of Fund II, buying a 60% stake in Sydney-based Southern Cross Dental Laboratories for an enterprise value of $95 million.

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• Topics
• Australasia
• Exits
• Industrials
• New Zealand
• Ironbridge Capital
• Exit