Listed recycling and waste management company, Sims Group (ASX: SGM), has acquired Melbourne-based asset management business, Clearhouse Technology, for an undisclosed sum.
Clearhouse will be integrated into Sims' E-Recycling division and branded under the Sims Life Cycle Services banner. Clearhouse co-founders and former Volante employees, Tony Nestola and Glenn Reid, will continue as consultants under three-year contracts. All 25 Clearhouse staff have been retained.
"Sims has been doing a lot in the recycling space; they're now driving into the asset recovery market," Nestola said. "This deal allows them to fast-track their expansion into this space."
Clearhouse and Sims had been working together for some time before engaging in acquisition discussions seven months ago, Nestola said.
"Australia Post is one of our big customers and that's a joint Clearhouse/Sims nation-wide project," he said. "That was a key part of us realising the synergies of our two companies."
Clearhouse was established in 2003 to provide IT asset recovery, management and end-of-life services. The company refurbishes and on sells equipment locally and offshore, and has been partnering with Sims to recycle end-of-life assets.
Since its inception four years ago, Clearhouse has added on new premises to grow its processing capacity and now handles over 100,000 assets annually. Its target market is Australia's top 2000 corporates and government agencies.
In a statement, Sims E-Recycling global CEO, Graham Davy, said the Clearhouse deal complemented its recent acquisition of UK asset management firm, Life Cycle Services, and its efforts to move into this space.
Sims will also launch a new e-waste mechanical facility in Sydney in August which it claims is one of the first in the region.
Nestola said the pair had big expansion plans and would bring on additional reps in most Australian states over the next six months. The company will also endeavour to break into the broader Asia-Pacific market and could look at acquisitions.
"A lot of the customers we deal with have offices in Singapore for example - we are positioning ourselves to be the only true national asset recovery and recycling facility in Asia-Pacific," Nestola said.