The construction materials supplier signed an agreement with Transpacific Industries in December 2014 for the sale of its Western Landfill business, which is co-located with Boral’s Deer Park Quarry and asphalt and concrete operations at Ravenhall in Melbourne, Victoria.
The transaction has now been completed, with Transpacific Industries’ waste management division, Cleanaway, officially taking over the landfill business on 28 February.
As part of the sale, Boral received a $150 million upfront payment and approximately $15 million for site preparation work. Further to this, Boral will receive fixed payments and volume-based royalties for the landfill’s remaining life.
A press release from Transpacific reported that the acquisition had secured the company’s long-term position in the Melbourne market by allowing it to deliver collected waste to its own sites rather than to third party-operated sites, adding that this would “drive enhanced cash flow and higher returns”.
“Managing landfills is at the core of what we do,” Transpacific Cleanaway regional manager Clete Elms said. “We now manage 16 landfills across the country so we understand what it takes to meet the rising standards set by environmental regulators and surrounding communities … we’ll use our collective operational and management expertise to make sure this is a best practice, well-engineered landfill that minimises impacts on the community.”
It was said that in order to do this, Transpacific would be organising engineers to assess the operational systems in place at the site – including environmental monitoring, stormwater management and landfill gas management – to ensure that “best practice is achieved or exceeded in the future”.
Boral, which ran the landfill for 15 years in order to fill a disused Deer Park Quarry void, will continue its quarrying activities adjacent to the Transpacific-owned business, which is now known as Melbourne Regional Landfill.