Flush with Ambition: How a Key Deal Made FLSSH NZ’s Sanitation Leader

Family-owned sanitation provider FLSSH has acquired Kiwi Flush, a deal the company says marries a long-planned growth strategy with a right-time opportunity.

The move expands FLSSH’s national footprint across the North Island, adding depots, people and a modern fleet of more than 7,000 portable units, positioning the business to service simultaneous tier-one events and complex construction projects. Joe Spooner, a two-time America’s Cup winner and his wife Melanie built Kiwi Flush into a respected operator and have chosen to sell to focus on other opportunities.

The acquisition was pressure-tested in the Icehouse Owner Manager Programme, where FLSSH directors Anthony and Stefan Covic refined its financial model and integration plan. Coming as construction shows early signs of recovery and major events like Splore prepare to return, the transaction signals optimism and a bet that leadership capability will drive momentum as the country transitions into a new economic cycle.

Stefan and Anthony shared insights from their acquisition story with us:

Was this acquisition part of a longer-term growth strategy or more of a timely opportunity?

Stefan:

This acquisition was the perfect intersection of long-term strategy and a timely opportunity. For several years, our strategic plan has focused on solidifying our market position and expanding our national footprint.

We've always had immense respect for Kiwi Flush. They were a formidable and well-run competitor creating a powerful incentive for our business to consistently pursue innovation and strive for quality and service. When the opportunity arose to explore an acquisition, it allowed us to execute on an element of our strategic growth plan and we’re delighted that Joe and Mel have chosen to sell Kiwi Flush to us.

How did you incorporate the plan for the acquisition into your time in the Icehouse and what was happening in the business at the time you joined?

The Icehouse was instrumental. We entered the Owner Manager Programme with a possible acquisition already on our radar as a serious possibility and a core part of our strategic growth plan. Icehouse provided the perfect environment to pressure-test the entire plan. We used the frameworks and expertise to refine our financial modelling, develop a robust integration strategy, and plan for the operational and cultural challenges of merging two established companies. It wasn't just a sounding board, it was crucial for our future strategy - giving us the confidence to execute a deal of this scale.

The skills we learned and the connections we made through the OMP were foundational to this acquisition. For example, Frank Accounting was our most critical partner. They were more than just accountants; Lee, Yuri, and their team acted as true mentors in business strategy and planning. Their direct support enabled us to build a strong business case and the forecasts required to move forward with confidence.

Before we got into the Icehouse, we were at crossroads as a business - with things getting bigger we were outstripping the processes, planning and governance that we had in place. We were weighing up individual mentorship or bringing in external directors. One morning I was reading the Rosebank magazine waiting for a coffee to be made and came across a case study - we were quickly onboarded and set up on the Icehouse rocket ship.

How does this deal position FLSSH in the market now?

The acquisition is an important part of our continued improvement in the position of FLSSH in the market. It rounds out capability and provides scale to ensure we can compete effectively in what is a very competitive industry. We’re confident that this is a move that solidifies our position as New Zealand's largest specialist provider of mobile sanitation services.

This strategic expansion enhances our coverage across the North Island, integrating Kiwi Flush's operations with our existing depots in Whangarei, two locations in Auckland, Tauranga, Hamilton, Taupo, and Wellington. The acquisition grows our total fleet to over 7,500 portable sanitation units and a fleet of over 40 trucks, creating an inventory of portable toilets, portacoms, trailered luxury units, showers, and hand wash basins that will allow us to better serve our key partners in the construction and events industries.

Our extensive range covers all needs, from robust and practical units for large-scale sites to premium shower and toilet facilities for high-end events. We are also committed to offering the latest innovations, such as vacuum flush technology that significantly reduces water usage.

Next steps – establish ourselves in the South Island to be a true nationwide business.

Have you been affected by the downturn in construction and events being postponed? Are you seeing recovery?

Absolutely, very few businesses (particularly Auckland based) have been entirely immune to the economic headwinds the construction industry has faced. We've seen some large-scale commercial construction projects slow down, and the uncertainty over the past couple of years has affected the events sector, coupled with the cost-of-living crisis. However, our business is diversified across both sectors, which provides a natural hedge and we will continue to look to diversify into other sanitation and cleaning sectors.

We are incredibly optimistic. The return of iconic festivals like Splore, international sporting events like the Sail GP, international acts like Metallica and Ed Sheeran returning to NZ is a massive confidence booster for the entire events industry and a strong signal that New Zealand is back in business.

On the construction side, our data is showing 'green shoots' of recovery. While the wider commercial sector is still cautious, we are seeing resilience in infrastructure projects and the residential market. Number of issued consents are a key barometer, and they indicate a steady, albeit careful, climb back.

How do you split your roles in the business?

Anthony:

Stefan and I are cousins who grew up together, learning from a strong family tradition of entrepreneurship. Our fathers have been successful business partners for years, building a legacy based on trust and loyalty through numerous ventures.

While the old saying warns against mixing business with family, our family's history proves the opposite. For us, this shared background isn't a risk; it's our greatest asset and the foundation of our business. This philosophy is so fundamental that it inspired a core FLSSH value: ‘Respect Your Family.’ This principle extends to everyone here. We are more than colleagues or a team; we are the FLSSH family, a culture that shapes how we support and interact with one another every day.

Stefan and I have very complementary skill sets, which is the foundation of our partnership. Broadly speaking, Stefans’s focus is more on the long-term strategy, operations, and financial side of the business ensuring the engine is running efficiently and we're geared for growth. I lead the commercial aspects of the business, including sales, marketing, and key client relationships.

How are teams, assets, and operations being brought together in a way that keeps employees motivated and engaged?

Right now, our number one priority is people. That means clear and constant communication with both the FLSSH and Kiwi Flush teams, as well as with our customers to assure them of a seamless transition. Operationally, we are meticulously planning the integration of our vehicle fleets, routing software, and depot logistics.

Blending cultures is the most critical part. We are not approaching this as 'FLSSH taking over Kiwi Flush.'Our goal is to create a single, unified culture that incorporates the best of both worlds.

We're actively listening to our new team members to understand their processes and what made their company successful. The key is to be transparent, respect the legacy of both businesses, and build a shared vision for the future. Keeping everyone engaged comes down to making them feel valued and showing them the exciting opportunities that being part of a larger, growing organisation will bring.

Put simply, a happy and engaged team deliver the service our business aspires to and keeps our customers happy.

You're opening a new Henderson depot - how does it link to your long-term vision for innovation?

Our new depot is the physical embodiment of our long-term vision for FLSSH -  it’s state of the art and engineered for a North Island wide scale. Launching in tandem with the acquisition, it marks a pivotal moment in our growth.

Drawing on insights from sanitation facilities we have visited around the world, we are confident this depot sets a new benchmark not just for New Zealand, but internationally. Its design is the culmination of years of operational experience, meticulously planned to incorporate every lesson learned from establishing our regional depots.

Engineered to service our expanded Auckland fleet, the depot features advanced systems for cleaning, maintenance, and sustainable waste processing. Key initiatives include a 180,000-litre rainwater harvesting system and extensive solar power integration, significantly reducing our environmental footprint while increasing our capacity.

The depot will serve as our national centre of excellence, providing a dedicated space to trial and implement new technologies. This includes everything from sophisticated GPS fleet management software to the next generation of eco-friendly sanitation products.

We knew that combining the launch of the new depot and this acquisition was going to be very busy but we don’t pretend to do anything by halves!