According to reports, India’s Ramky Enviro Engineers Ltd., a waste management company backed by Standard Chartered PLC’s private equity unit, has made an acquisition in Australia, just months after it delayed a US$200 million initial public offering.
Ramky, through its subsidiary Ramky Environment Pty. Ltd., has agreed to acquire Australian environmental engineering and petrochemical services provider Enviropacific Services Pty Ltd., capping a search for capital that was earlier reported by The Wall Street Journal.
“Enviropacific provides Ramky Environment with a strong Australian platform to drive substantial growth in both Australia and internationally in key regions including Greater China, India, Singapore, Asean (Association of Southeast Asian Nations) and the Middle East where strong demand exists for the high quality and environmentally sound services provided by Enviropacific,” Ramky Enviro Engineers Ltd.’s chief executive, Swee O Goh, said in a statement, adding that Ramky plans to make targeted acquisitions in Australia and enter new market sectors.
Terms of the deal were not disclosed, but a person familiar with the matter said the initial amount and performance-based incentive payments totaled around 45 million Australian dollars (US$41.5 million).
“This is a great opportunity for Enviropacific to leverage off Ramky to achieve our significant growth aspirations across an international playground,” Enviropacific’s executive director and co-founder, Matt Fensom, told MoneyBeat. Mr. Fensom added that the company’s revenue is projected to grow more than 40% from its fiscal 2013 base of A$67 million, with a proportion of fiscal 2014 contracts already awarded.
“Enviropacific’s strong market position, blue chip client base, significant revenue growth and extensive in-house capability made it an attractive acquisition opportunity,” Mr. Goh said. The company’s past and present clients include Royal Dutch Shell, Boral Ltd, Orica Ltd and Exxon Mobil.
EAC Partners and McCabes Lawyers advised Enviropacific while Clifford Chance advised Ramky, which handles and manages more than 10,000 tonnes of solid waste per day. The Hyderabad-based company operates across 17 Indian states and territories, and also has a presence in Singapore, China, the United Arab Emirates and West Africa.
In April, Ramky delayed its IPO due to market conditions, after hiring banks including J.P.Morgan and Bank of America to manage it.