Cleanaway agrees to A$9.3 billion EQT takeover
Key Facts
Australian waste management company Cleanaway has agreed to a takeover by EQT valuing the enterprise at about A$9.3 billion, including debt, according to Reuters. That is equivalent to about US$6.5 billion, in a deal that will give the buyer ownership of all the company's shares upon completion. The announced agreement sets cash consideration at A$3.095 per share, according to details published by Investing.com. The acquisition is being made through an EQT infrastructure fund under a court-approved scheme of arrangement to transfer ownership of the shares. The cash consideration represents what shareholders receive for their shares, while the enterprise valuation also includes the company's debt. The binding agreement announced remains subject to completion conditions and the necessary approvals.
The offer represents a 32.1% premium to Cleanaway's closing share price on August 12, according to Reuters. That was the last trading day before EQT's interest in acquiring the company was disclosed, and is the reference price used to calculate the premium. Cleanaway's board unanimously recommended that shareholders vote in favour of the takeover scheme, endorsing the agreement before it is put to them. Reuters said the board's recommendation applies "in the absence of a superior proposal". The recommendation also remains conditional on the independent expert continuing to support the deal, under the terms of the announced agreement. In addition to the shareholder vote, completion of the ownership transfer requires court and regulatory approvals, among the procedures to which the takeover remains subject.
The agreement allows Cleanaway to pay total cash dividends of up to A$0.19 per share before completion, according to Reuters. The permitted dividends include a fully franked special dividend, within the overall cap set for shareholders. Any dividends actually paid will be deducted from the takeover consideration payable, under the agreement's settlement mechanism. In trading, Cleanaway shares rose about 20% during the session in which the agreement was announced on October 19, 2026, according to Reuters. The share price reached A$2.960 during the session, rising after the takeover terms were announced. The trading price remained below the cash consideration set out in the agreement, payment of which depends on completion of the deal's procedures and conditions.
Cleanaway operates a nationwide network spanning more than 330 sites, according to its published business overview. Its services begin with waste collection and extend to processing, recycling and safe disposal across the various stages of its operations. The company describes its services as "integrated waste solutions, from collection and processing to recycling, treatment and safe disposal". The acquisition thus covers a company engaged in waste management and resource recovery through its operating network in Australia. Results for the latest financial year showed Cleanaway's total revenue rose 13.5% to A$4,371.3 million. That revenue expansion coincided with growth in underlying operating earnings and free cash flow, according to the financial results announced by the company.
Underlying earnings before interest and tax rose 14.2% to A$470.2 million in the latest financial year, according to Cleanaway. The company attributed the growth to solid waste services and the Contract Resources business, among the operations that supported its operating performance during the period. Statutory net profit after tax, however, fell 37.2% to A$98.5 million, according to the annual results. Free cash flow generated by the business increased 63.7% to A$213.8 million. Cash flow in the comparison period was A$130.6 million in 2025, according to figures published by the company. The latest results thus combined improved underlying operating profitability and cash flow with a decline in statutory profit after tax.
For the coming financial year, Cleanaway is guiding for underlying earnings before interest and tax of between A$500 million and A$530 million. The company provided the range in its financial results, setting its operating target for the next period above the level of the latest year. The lower end of the guidance is A$500 million, while the upper end is A$530 million. On the takeover, Cleanaway expects to hold a shareholder vote before the end of February 2027, according to Investing.com. The anticipated vote represents one stage in the approval process that must be completed to implement the agreed scheme of arrangement. The company is targeting completion of the deal by the end of March of the same year, according to the announced expected timetable.