Affinity Equity exits race for $1bn Waste Services Group

Bids for Waste Services Group are being prepared by suitors to be submitted this week.

Affinity Equity Partners is understood to have left the race to buy Waste Services Group after blowing away the competition to win Healius Lumus Imaging a week ago for $965m.

Affinity, advised by investment bank Barrenjoey, had been considered the party to beat for WSG.

Also looking are EQT, which is keen, The Carlyle Group, Pacific Equity Partners and BGH Capital.

Bids for WSG are being prepared by suitors to be submitted this week.

So far, the understanding is that the bidders are focusing on the group’s brokerage business and the implications of managing it.

The unit generates half of WSG’s revenue but third parties carry out the work – and they must be managed.

Investment bank UBS is working on the sale of WSG.

It has told prospective buyers that WSG’s earnings before interest, tax, depreciation and amortisation could increase from $100m to about $250m in five years.

Established in 2016 and run by Matt Tamplin, WSG has about 6000 customers across managed services and collections. It has brands such as Premier Waste, Superior Waste, Waste Free, Paper Resource, Specialised Services, Argus and APC Waste Consultants.

The understanding is that there’s a valuation of about $1bn on the business, which is owned by private equity firm Livingbridge.

BGC sale process under way

Meanwhile, the Macquarie-advised sale process for the $800m Perth-based building materials company BGC has been launched.

DataRoom reported in July that it was returning to the market and likely to attract all the major building materials players in Australia as potential suitors, including Boral.