This mid cap star could be one of the best growth shares on the ASX

I think Bingo Industries Ltd (ASX:BIN) could be one of the best mid cap growth shares available on the ASX. Here's why…

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The Bingo Industries Ltd (ASX: BIN) share price has managed to avoid the market selloff on Wednesday.

In afternoon trade the waste management company's shares are up over 1.5% to $2.31 on the day of its annual general meeting.

Why is the Bingo Industries share price on the rise?

This morning Bingo Industries released its annual general meeting presentation ahead of its event and investors appear to have liked what they saw.

In the presentation management spent a bit of time talking about its planned acquisition of Dial A Dump Industries.

It has labelled the acquisition as "transformational" and I couldn't agree more. Dial a Dump's high-quality waste assets can be found in prime locations in Greater Sydney and are expected to enhance the value of Bingo's strategic network.

In addition to this, management believes that it will provide the company with the opportunity to develop its Recycling Ecology Park and diversify into new markets including the post collections market for putrescible commercial and industrial and municipal solid waste.

It continues to expect annual synergies in the region of $15 million from the acquisition.

Though, it has reminded the market that the acquisition is subject to ACCC approval. A decision from the competition regulator is expected to be announced before the end of the year.

What is the Recycling Ecology Park?

Managing director and chief executive officer, Daniel Tartak, revealed that the most exciting aspect of the Dial a Dump acquisition is the opportunity it provides for Bingo to develop its vision of a Recycling Ecology Park on the site at Eastern Creek.

According to the Tartak, the park will be a fully integrated recycling and waste infrastructure asset which is 100% powered by renewable energy. It will handle both putrescible and non-putrescible waste in a single location and be the first of its kind in this country.

He stated: "We'll be able to recycle bricks and concrete; timber; organics; scrap steel; paper and cardboard; plastics; and contaminated soils. And we'll also be able to produce Refuse-Derived Fuel. What is not recoverable will then be sent to landfill. And all this will happen in a single location."

Trading update.

Mr Tartak also provided shareholders with an update on its performance so far in FY 2019. He advised that the company has started the financial year well and is on track to deliver on its FY 2019 pro forma EBITDA growth guidance of 15% to 20%. This guidance excludes any positive impact of its Dial A Dump acquisition.

Looking further ahead, Mr Tartak believes that the Dial A Dump acquisition, its extensive redevelopment program, and expansion into the Victorian market will "act as a springboard for increased EBITDA growth in FY20."

Should you invest?

While Bingo Industries may not be as exciting as Altium Limited (ASX: ALU) or WiseTech Global Ltd (ASX: WTC), I believe it is still one of the best mid cap growth shares you can find on the Australian share market right now.

While there is a risk that its shares could pull back meaningfully if the ACCC blocks its acquisition of Dial A Dump, I feel quite confident that it will go ahead as planned.

As a result, Bingo Industries is a buy for me.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Altium and WiseTech Global. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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