MergerMarket by Fay Sanders

| 05 July 2010

Wasteman seeks growth in South Africa and sub-Saharan Africa, sources say

Wasteman, a South Africa-based provider of waste management services, is looking to grow in both South Africa and sub-Saharan Africa, said company sources.

The company specialises the handling, control and treatment of both hazardous and non-hazardous waste and generates around ZAR 600m (USD 78m) in revenue.

Expansion in South Africa is likely to be focused in Gauteng, where the company is currently under-represented. This growth will be achieved either via opportunistic bolt-on acquisitions or organic growth.

Wasteman is likely to acquire companies worth ZAR 50m or maybe larger landfill sites worth between ZAR 150m and ZAR 200m, the second source said. Deals would be financed via a combination of debt, equity and operating cash flow.

Geographical expansion in Sub-Saharan Africa is likely to occur in countries such as Tanzania, Angola or Mozambique. The company already has a foothold in Mozambique following a pipe inspection contract it recently secured in the port of Beira, a source said.

Earlier this year, the company carried out the acquisition of Spill Response Team, an emergency hazardous cleaning business serving Sub-Saharan Africa.

EnviroServ Waste Management and Interwaste are two competitors of Wasteman.

Marlow acquired Wasteman from Suez Environnement earlier this year. Nedbank provided debt financing for the deal, and Edward Nathan Sonnenbergs acted as legal adviser to Marlow.