Global Renewables

Sector Outsourced Services
Industry Alternative Waste Treatment
Location Australia
Investment Data December 2010
Original Deal Size A$57m

Company Description

GRL operates an Alternative Waste Treatment facility (“AWT”) at Eastern Creek in Sydney. The AWT processes up to 195,000 tonnes of putrescible municipal waste per annum (to be expanded to 220,000 tonnes this calendar year), and diverts around 60% of waste away from disposal into landfills. The diverted waste is primarily converted into compost.

Investment Rationale

Major attractions of the opportunity were:

  • Key social infrastructure style asset, positioned directly in line with government policy on waste reduction and re-use.
  • AWT and waste generally are attractive sectors in Australia due to high barriers to entry and underlying population growth.
  • Low exposure to competition, technology or regulation risk.
  • Strong defensive characteristics due to the 22 year deliver-or-pay contract.
  • Excellent management team with significant IP in waste and AWT sector.
  • Potential growth via tender opportunities for future AWT projects.

Ironbridge Value Added

The value added by Ironbridge has been as follows:

  • The Ironbridge Portfolio Team has been working with GRL’s finance team to improve financial management and KPI reporting. We expect these changes to provide greater visibility over operations and accordingly improve budgeting accuracy and cost control.
  • We are assisting the management team in preparing tenders for AWT plants which are expected to be called.
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