Street Talk can reveal JR Richards, regional NSW’s biggest player with $24 million in annual earnings, has collected non-binding indicative bids and shortlisted a handful of bidders to progress in the auction.
The final round is expected to see Clark Perkins’ Mercury Capital go toe to toe with Swedish PE giant EQT Partners. The private equity firms are rubbing shoulders with a handful of rival buyout funds and strategic parties in the data room, sources said. Mercury Capital knows the lay of the land, having acquired recycling and resource recovery business Re.Group last year. As a part of the deal, the Sydney PE investor orchestrated a bolt-on acquisition of Polytrade, a recycling sorting and processing outfit. The firm has also owned. Sources said Tompkins was again leading the charge on JRR, while EQT has private equity head Frank Heckes running point on the firm’s bid.The up-for-grabs JRR was put up for sale by its founding family after 65 years.
Its biggest unit, commercial collection, has about 150 vehicles that collect all types of commercial waste from customers and then oversees the processing or disposal. JRR has also branched out of its traditional money-makers into processing and industrial services. Put it all together and JRR made $203 million revenue and $24.8 million adjusted EBITDA for the 2023 financial year. This was projected to grow to $218 million revenue for $30.6 million earnings this financial year.JRR’s auction follows a flurry of activity in the sector. UBS is advising Auckland-based waste management business Smart Environmental.