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2 Jun 2008 07:00
2 June 2008
Augean Plc ('Augean' or 'the Company')
Acquisition
Augean Plc, one of the UK's market leaders in the management of hazardous waste, is pleased to announce the acquisition of Astec Chemical Waste Services Limited ('Astec') for an initial cash consideration of £1.0 million satisfied by existing bank facilities. In addition, further cash consideration of up to a maximum of £0.3 million will be due in 2010 if certain performance criteria are met in the first 18 months of trading under Augean's ownership.
Astec provides bespoke services in the collection, transport and disposal of chemical waste to a wide range of customers including educational establishments, chemical and pharmaceutical manufacturers, local authorities and research bodies. Astec operates from a permitted site in Rochdale in the North West of England. The acquisition further broadens Augean's services to customers, geographical reach and client base. Astec will be integrated into Augean's Treatment Division. There are a number of clear cross selling opportunities.
The book value of the Astec assets being acquired was £0.3 million at 30 June 2007. In the year ending 30 June 2007, Astec generated revenue of £0.7 million and profit before tax of £0.2 million.
Paul Blackler, CEO of Augean Plc, commented:
"By bolting Astec straight onto our treatment division, this acquisition has accelerated our ability to provide specialist services to our existing and new clients in line with our strategy. As well as the clear service complement, the acquisition also broadens our geographical reach. We look forward to growth in this service area as we integrate the business and welcome a strong technical and commercial team to our group."
- Ends -
For further information, please contact:
Paul Blackler/Peter Southby, Augean Plc - 01937 844 980
Billy Clegg/Ed Westropp, Financial Dynamics - 020 7831 3113
James Wellesley Wesley, Landsbanki Securities (UK) Limited - 020 7426 9000
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