LONDON (Alliance News) - Augean PLC said Monday it has bought the assets and surrounding land at its East Kent Waste Recovery Facility from the landlord of Discovery Park Ltd in a GBP1.5 million cash deal.
The specialist waste management business said the purchase of the East Kent Waste Recovery Facility, located at the Discovery Park in Sandwich, Kent, will expand its footprint in the region, granting freehold title over the areas covered by the original leases but also additional land to the south of the facility.
The site was created in April 2012, with Augean signing multiple 10 year leases to operate a high temperature incinerator, solvent handling facility and associated plant and storage buildings at the site.
Augean said the deal purchase will provide a self-contained, secure site, presenting opportunities for complementing the existing incineration activities with new waste management services.
Under the terms of the deal with the landlord, Discovery Park Limited, the cash consideration is GBP1.5 million on completion, with two further payments of GBP0.2 million deferred until January 2015 and January 2016. The value of the assets at the facility is expected to be GBP2.5 million at completion, said the company.
Turnover at the site was GBP1.5 million in 2013. The group said its forecasts for 2014 expect the upgraded assets to deliver turnover exceeding GBP2.5 million and an EBITDA contribution to the Group of GBP0.3 million.
Shares in Augean were trading marginally lower Monday afternoon, down 0.31% at 44.12 pence per share.
By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance
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