Daniels Health (previously Daniels Sharpsmart) is pleased to announce it will be continuing to grow its global business footprint after signing a binding agreement to sell its Australian medical waste business to Tox Free Solutions Ltd (ASX:TOX) for $186m. In the past financial year, Daniels Australia had revenues of $83m generating an EBITDA of $21m.
"This sale is a natural evolution of the Daniels mission to bring to the rest of the world the same sort of innovative approach to medical and sharps waste disposal that we developed in Australia," said company founder, Mr Dan Daniels.
"Ever since we introduced cleaner and more sustainable medical waste solutions in Australia back in 1986, we have been aware of a strong international demand for products such as our Sharpsmart and Clinismart reusable sharps and clinical waste containers," said Mr Daniels.
"The sale of the Australian business will allow us to redouble our efforts in expanding into the global healthcare industry, particularly in our current key markets of the United States, Canada, United Kingdom and South Africa.
"Following our first offshore expansion in 1997, we have had an excellent response from healthcare workers and organisations to our Sharpsmart reusable sharps containment system, which has been globally recognised and appreciated for its safety and environmental concern," said Mr Daniels.
Daniels Health chairman, Mr Markus Koch, said the international push was a natural progression for a company that had started out of a concern about the potential environmental damage resulting from the widespread practice of burning medical waste, including disposable sharps containers, in inefficient hospital incinerators.
"It was this concern that led us to develop reusable sharps container systems and alternative waste treatment methods, which have resulted in millions of kilograms of plastic being prevented from disposal," said Mr Koch.
Daniels Health is the second largest player in North America for the provision of waste services to the healthcare sector. With national coverage including 22 operational sites, Daniels currently services over 4,500 customers across the USA.
Mr Daniels said Daniels Health provides a comprehensive offering of products and services that vary according to the demands of individual markets and include services such as safer sharps management, effective medical waste treatment, secure pharmaceutical and chemotherapy waste destruction and efficient waste segregation and logistics systems.
"We will continue tailoring our offerings to suit the various markets that we operate in and will invest to support the international growth we have already been experiencing," he said.
As part of the binding agreement to acquire Daniels Health Pty Ltd and Daniels Manufacturing Pty Ltd by Tox Free Solutions, Mr Daniels and its chairman Mr Koch have been retained as advisers to the health business unit and will assist Toxfree on its strategic and operational management.
Mr Daniels has also agreed to subscribe for approximately 12.6 million Toxfree shares as part of the transaction and will become a shareholder in Toxfree on completion. About 300 employees across 17 sites including two incineration facilities in Sydney and Melbourne, and three joint venture managed sites in New Zealand, will transition to Toxfree.
Under the current indicative timetable, the sale of the Australian business is due to complete by December 1 this year.