What I like about the latest acquisition is that they have...

What I like about the latest acquisition is that they have gently cracked the Eastern States market.

Specialised Tank CLeaning Services (STCS) have their main operations in WA. The fact that they also have a presence in the Eastern States albeit a small one, means that TOX can slowly penetrate a new market without exposing themselves too much at such an early stage.

Im sure TOX will now expand organically for the medium term at the very least, attempting to strengthen its already very strong market position in WA and establish brand recognition in the Eastern States.

Even if STCS does not succeed in the Eastern States, the fact that the company's exposure to that market segment will be immaterial, it will not hurt TOX's position financially too much. Its a bit like dipping your toe in the water before jumping in. TOX will be looking at its foray into the Eastern States to breakdown the barriers to entry, establish a brand presence and look for other investment opportunites possibly to complement the operations it will have established there.

I suppose all that talk from management back in January that they were looking for acquisitions have become true after all. Id be surprised if a similar comment was inserted into their next quarterly this month.

Cheers