AUG.L Regulatory News (AUG)

20 Dec 2007 07:00

Augean Plc20 December 2007 20th December 2007 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 Hitech Equipment Limited ('Hitech')for an initial cash consideration of £5.9 million. As part of this transaction,Augean will also purchase the freehold of the Paisley site for an additional£0.35 million in cash. The total of £6.25 million will be satisfied by existingbank facilities. In addition, further cash consideration of up to a maximum of£0.75 million will be due in 2009 if certain performance criteria are met in thefirst 18 months of trading under Augean's ownership. Hitech operates from two strategic locations with a fully permitted, two acrehazardous waste treatment and recycling facility in Paisley, Glasgow, and aspecialist industrial services operation in Ellesmere Port in the North West ofEngland. The business provides a broad range of services including hazardouswaste treatment, recycling and recovery and specialist collection systems. Thebusiness further broadens Augean's services, geographical reach and client baseand provides the Company with access to new markets. Hitech will be integratedinto Augean's Treatment Division and will benefit from cross-selling into someof Augean's existing customers. The book value of the Hitech assets being acquired was £0.9 million at 31 May2007. In the year ending 31 May 2007, Hitech generated revenue of £4.0 millionand profit before tax of £0.5 million after charging non-recurring items whichamounted to £0.1 million. The acquisition is expected to be immediatelyenhancing to earnings. Paul Blackler, CEO of Augean Plc, commented: 'This acquisition has further enhanced the geographical reach of Augean and hasan immediate integration fit thus bringing new specialist services to ourcustomers. The business also introduces an experienced and ambitious managementteam which will support the delivery of the development plan. The acquisitionis further demonstration of Augean's strategy to become the leading provider ofhazardous waste solutions in the emerging UK market.' - 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 This information is provided by RNS The company news service from the London Stock Exchange