TPI Transpacific Industries Group

[donnie]

TPI looks like a very good company, it looks like they will get waste management in a few month.
The directors seem keen to expand big time and become a global company. Sounds like a Toll holding, but in a different industry.
If TPI does grow bigger, we might see the shares reach $40 like Toll did.



Background on Transpacific Industries

Transpacific Industries is a leading Australasian provider of industrial
services and total waste management solutions with a focus on liquid and
hazardous waste management services. It also has a complementary commercial
vehicles importation and distribution business.

The company listed on the ASX in May 2005 and has a current market
capitalisation of A$1.2b. Transpacific Industries' major shareholders, the
Peabody Family, are also the company's founders. Mr Terry Peabody is the
company's Executive Chairman and has over 20 years experience in the
industry.

In FY2005, Transpacific Industries had revenue of A$483 million and EBITDA of
A$70.9 million. Reuters consensus forecast revenue and EBITDA for
Transpacific Industries in FY06 is A$647 million and A$103 million
respectively, reflecting the company's strong growth outlook.

Transpacific Industries' business model is based on the provision of tailored
services to meet the needs of each customer group and to provide a wide range
of integrated total waste management and facility management services.
Transpacific Industries has business operations in approximately 130
locations throughout Australia and New Zealand, including 36 major processing
facilities. As at March 2006, Transpacific Industries had approximately 2,300
employees.

The company operates three principle divisions:
o Waste Management and Recycling Services -- this is Australia's
largest national business focussed on the collection, transport, processing,
recycling and disposal of liquid wastes and hazardous waste with operations
throughout Australia and New Zealand. In FY2005, this division contributed
A$26.1 million in EBITDA (37% of Transpacific Industries total EBITDA).
o Industrial Solutions -- specialises in industrial cleaning and total
waste management solutions. The business includes specialist high pressure
water and abrasive blasting, vacuum loading, sewer and drain cleaning as well
as aqueous and solvent based parts cleaning services. In FY2005, this
division contributed A$22.2 million in EBITDA (31% of Transpacific Industries
total EBITDA).
o Commercial Vehicles -- imports and distributes heavy-duty trucks and
associated parts as well as MAN bus chassis, marine engines and industrial
engines. Transpacific Industries has exclusive import and distribution rights
for Western Star and Autocar trucks and parts throughout Australia, New
Zealand and select markets in Asia; and for MAN trucks, bus chassis and parts
in Australia and New Zealand. Transpacific Industries also has exclusive
import and distribution rights for MAN marine engines, industrial engines and
parts in Australia (except Western Australia and the Northern Territory). In
FY2005, the Commercial Vehicles business contributed A$22.6 million in EBITDA
(32% of Transpacific Industries total EBITDA).

Transpacific Industries has a proven track record of outstanding growth --
both organically and through successfully executed and integrated
acquisitions. Transpacific Industries has a number of ongoing projects which
will support continued organic growth, including well advanced plans for the
development of a hydrogenation business. Recent successful Australian
acquisitions include Waste Services New South Wales' liquid waste management
business (June 2005) and Cleanaway's liquid waste management business (June
2005). The company has also made successful recent acquisitions in New
Zealand where it has acquired Onyx's liquid and industrial services business
(December 2005) and Nup

[whatsup]

Floated at $2.60 May 05 great story the growth is just beginning definately a 10 bagger in the process!

[donnie]

This is a good interview from the ABC inside business program, about the future plans of TPI.

Transpacific drives waste industry shake-up

Date : 09/04/2006

Reporter: Alan Kohler

ALAN KOHLER: In the recent flurry of takeover activity, the big $770 million merger between Transpacific Industries and its trans-Tasman rival, Waste Management New Zealand, has pretty well flown under the radar. While it's still to be formally approved, it's part of an extraordinarily rapid and aggressive consolidation of the waste management industry by Transpacific since it was floated last year. It also strengthens the company's position for the biggest catch of all - the Brambles' Cleanaway and Industrial Services divisions, which are on the block for, as some analysts are tipping, well over $1.5 billion. I spoke to the driving force of the waste industry shake-up, Transpacific's founder, major shareholder and executive chairman, Terry Peabody, from his Brisbane headquarters.

Terry Peabody, I count about half a dozen press releases about acquisitions since you floated Transpacific last year, culminating in the current bid for Waste Management of New Zealand. Is there any danger of making too many bids, of growing too fast, of getting indigestion?

TERRY PEABODY, EXECUTIVE CHAIRMAN, TRANSPACIFIC INDUSTRIES: Not really, Alan, I think something you need to realise is that this has been our mode for a number of years and actually, the New Zealand acquisition will be our 18th in the last year. But we've been traditionally doing this by taking on small, bolt-on acquisitions somewhere between $5 million and $20 million and tying them into our group and this is - about half our growth has been through acquisition and about half through organic growth historically.

ALAN KOHLER: So is this sort of acquisition program what you had in mind when you floated Transpacific? Is this why you went to the market for capital?

TERRY PEABODY: Yes, it really was. And although of course we weren't aware that the New Zealand transaction would occur, we certainly were aware that there was going to be opportunities to consolidate in the industry and it made a lot of sense to go public in that regard.

ALAN KOHLER: And you've said that your next plan is to bid for and win Cleanaway, the Brambles operation that's being sold. It's unusual to so publicly stalk another company like that. Why have you done that?

TERRY PEABODY: Firstly we thought we were the most natural to in that business, and once we joined with Champ, who we thought were certainly the most prominent private investor group in that arena, we felt that it made sense for us to go public and let people know that we were intent on this acquisition. Certainly our company has far more synergies than anyone else because we have operations throughout Australia. Every little town that you'll find a Cleanaway depot and office, you'll normally find Transpacific there. By combining Australia's leading and largest liquid waste company with Australia's leading and largest solid waste company, you're going to have a company that is set to service the industry and commerce at large like certainly no other one in Australia.

ALAN KOHLER: But usually bidders at an auction try to appear casual or disinterested, thinking the vendor will jack up the price if they don't. I mean, you sort of present a picture of somebody who's prepared to pay whatever it takes to get Cleanaway, is that the case?

TERRY PEABODY: Well, to a degree. I mean, we're certainly not going to do anything that doesn't make sense for the company in the long term, but certainly I believe we're the best position to give Brambles the best price for that business. We bought several other businesses from Brambles over the last couple of years and they've become very successful, the people are extremely content working for our organisation and some of their people are in very prominent positions in our company. So I think we've demonstrated to Brambles that we're extremely responsible in those acquisitions and we certainly could an

[Lawso]

donnie: Thanks for your two great posts on TPI. Very positive information and more than we've had from NZ media. I note that Peabody makes no bones about describing the WAM deal as an acquisition, whereas on this side of the ditch it's a "merger". Whatever, I'm not uptight about it as some are here. I'll happily put much of my WAM windfall into the new and larger entity. It seems obvious that, if they hadn't got together, TPI would have outgunned WAM in any contest for the Cleanaway business, so the merger makes good sense from all points of view, IMO.

Incidentally, what is the "business sunday program" that the interview came from? Something on ABC?

[winner69]

quote:Originally posted by Lawso

donnie: Thanks for your two great posts on TPI. Very positive information and more than we've had from NZ media. I note that Peabody makes no bones about describing the WAM deal as an acquisition, whereas on this side of the ditch it's a "merger". Whatever, I'm not uptight about it as some are here. I'll happily put much of my WAM windfall into the new and larger entity. It seems obvious that, if they hadn't got together, TPI would have outgunned WAM in any contest for the Cleanaway business, so the merger makes good sense from all points of view, IMO.

Incidentally, what is the "business sunday program" that the interview came from? Something on ABC?


Business Sunday ..... Channel 9 program

Usually replayed on SKY channel 54 Sunday 1pm

[winner69]

That interview was actually from Inside Business on ABC

Watch the video from here
http://www.abc.net.au/insidebusiness/content/2006/s1612015.htm

[donnie]

Sorry winner and others,i copied the interview from another site. stupid me. (Its good to see someone is awake anyway.)

Here is the presentation slides for the takeover

http://imagesignal.comsec.com.au/asxdata/20060327/pdf/00601143.pdf