By Stuart Condie
SYDNEY–Cleanaway Waste Management will acquire Australian Eco Oils for in a move the company said provides an attractive entry point into the adjacent market of cooking oil collection and processing.
ASX-listed Cleanaway on Thursday said it agreed to pay 39 million Australian dollars ($26.5 million) for AEO, which is expected to generate A$6 million in fiscal 2024 annualized earnings before interest, tax, depreciation and amortization.
“High-quality, traceable used cooking oil is becoming an increasingly important source of feedstock for the production of renewable fuels, including sustainable aviation fuels and renewable diesel,” said Mark Schubert, Cleanaway chief executive and managing director.
Cleanaway expects to close the acquisition of privately held AEO in the September quarter.
Write to Stuart Condie at stuart.condie@wsj.com
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