Kiwi waste management biz Smart Environmental mulls future, taps UBS
Auckland-headquartered waste management business Smart Environmental has tapped UBS to try different dealmaking structures for a fit, as Downer’s sale of Repurpose It reignites M&A activity in the sector.
Smart’s founder sold majority interest to Maui Capital in 2017. Emma Young
It is understood Smart Environmental’s owners, including private equity investor Maui Capital, are checking into the dealmaking circuit as the mid-market private equity firm hits its six-year mark on the register.
It’s early days and potential backers are being told Smart is looking to raise capital to fund its growth strategy. But core-plus infrastructure investors types are betting on Smart and UBS to offer up a sizeable chunk – if not the entire business – for sale.
Smart has 25 contracts to collect waste bins from homes and businesses in 18 councils. It has about 400 staff and holds contracts with roughly 30 per cent of New Zealand’s territorial authorities.
The business was founded in 1993 and was wholly owned by founder Grahame Christiane until Maui Capital bought a majority stake in 2017. Maui’s founder Brent Lawgun and investment director Mark Hickling sit on Smart’s board, which is chaired by ex-Spark NZ boss Simon Moutter.
Christiane is still involved as a board director and remains a shareholder. However, he left management leadership in 2019.
The business is expected to draw out suitors who swarmed around recent waste management auctions including Downer’s Repurpose It and LMS Energy. In June, Street Talk reported Florida-headquartered private equity investor I Squared Capital has emerged as preferred bidder for Repurpose It with a bid of around $250 million.
The business was shopped with about $40 million earnings. Part of the sales
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