LONDON (Alliance News) - Waste management company Augean PLC said Friday that it has sold waste management brokerage unit AIS Ltd for a total consideration of GBP3.8 million.
The company has sold the unit to Regen Devco Ltd, a unit of Regen Holdings Ltd. The deal consideration includes an initial consideration of GBP3.0 million, with a further GBP800,000 on agreement of completion accounts and further amounts expected for delivery of working capital over normalised levels.
The unit generated a loss, before interest and tax, of GBP400,000 and revenue of GBP8.0 million for 2017. AIS has signed a three-year exclusive supply agreement to use Augean for its hazardous waste disposal and treatment. This will include the East Kent High Temperature Incinerator, which Augean will retain.
Augean plans to use the disposal proceeds to pay down existing debt facilities.
"This transaction forms part of our plan to streamline the group, concentrate on cash generation to reduce debt and focus on rebuilding the core strengths of the group moving forward," said Chairman Jim Meredith.
Shares in Augean were trading 1.9% higher at 26.00 pence.
