SITA consolidates market position with the acquisition of WSN

SITA Environmental Solutions (SITA), a 60:40 Suez Environnement (France) and Sembcorp Industries (Singapore) joint venture, has announced the acquisition of the New South Wales Government's waste services firm, WSN Environmental Solutions (WSN).

The $235 million acquisition substantially strengthens SITA’s presence and future service offering, both in NSW and nationally. WSN’s portfolio of assets is strategic to the long-term positioning of the company with significant benefits to be realised.

SITA’s Managing Director, Eric Gernath, said, “The management of re-usable resources and waste is an essential civil service. This acquisition is not simply complementary to our business, it is our business. The WSN assets are well positioned to realise excellent synergies with SITA’s current operations.

“This is an exciting time for SITA. The acquisition combines two successful companies to make a stronger organisation focused on growth, our customers and our employees,” Gernath continued.

The General Manager, Marketing & Strategy, Simon Gardner Lee, said, “The acquisition of WSN complements SITA's strategic growth platform in both the municipal and C&I sectors. It further consolidates our position as the Australian leader in resource recovery.

“SITA continues to expand and WSN’s asset base is strategically compatible with our existing business activities,” said Lee.

SITA will leverage its brand-building and innovation expertise, its understanding of the advanced resource recovery and organics markets, and WSN’s strong position in NSW to drive continued growth for the combined business within the industry.

The acquisition includes three engineered landfills in Belrose, Lucas Heights and Eastern Creek (including a landfill at Eastern Creek), two Advanced Resource Recovery ventures - the wholly owned ArrowBio Facility at Jack’s Gully and the Eastern Creek UR-3R waste contract, eight transfer stations and three material recovery facilities.

Of the successful transfer of ownership to SITA, the NSW Treasurer, Eric Roozendaal, said, “SITA Environmental Solutions is a significant trade player with a proven track record in the waste sector and has been at the forefront of waste recycling and recovery in both Australia and internationally.”

The transaction is expected to close over the first quarter of 2011.