HYR.L Regulatory News (HYR)

31 Aug 2005 16:20

HydroDec Group plc31 August 2005 31st August 2005 HYDRODEC GROUP PLC HYDRODEC COMPLETES ACQUISITION OF OTS AND ANNOUNCES BOARD CHANGES Further to the announcement made on 4 July 2005, Hydrodec Group plc ("Hydrodec"or "The Company") today announces the completion of the acquisition of OilTreatment Services Pty Ltd ("OTS"), its joint venture partner and the EPAlicensed site located in Young, New South Wales, Australia. It is Hydrodec'sintention to create a world-class centre of excellence at this location fortransformer oil re-refining and regeneration, and PCB treatment specifically,and also the re-refining of specialty oils generally. The OTS business includes two certified transformer oil analysis laboratories,one based at the Young site, a mobile oil regeneration plant, mobile transformerretro-fill plant, customer management software and systems, a web basedtransformer and oil monitoring and reporting system, product distributionmechanisms and an EPA licensed site with offices and oil storage facilitieswhere the existing Hydrodec plant operates. The previously announced developmentof the 20,000 litre a day plant continues and, when operational, this plant willbe based in Young. The combined business consolidates Hydrodec as a premium quality transformer oilsupplier and establishes it as a sustainable commodity and service provider. Theacquisition also provides Hydrodec with a location to further develop and expandits Persistent Organic Pollutants division. The consideration payable for OTS is being satisfied by the issue of 6,495,402new ordinary shares ("Ordinary Shares") at an issue price of 22.2p per share. Acash sum may also be payable depending on the working capital position of OTS asat today's date. In addition, 1,004,598 new Ordinary Shares are to be issued, atan issue price of 22.2p per share, to various third parties in satisfaction ofsums owed by OTS to such third parties. Application has today been made to theLondon Stock Exchange plc for the admission to trading on AIM of these 7,500,000new Ordinary Shares. John Gunn, Chairman, commented "As previously stated our corporate strategy isto focus initially on one industry in one geographic region. This acquisitiongives Hydrodec the foundation to consolidate its technology in Australia andprovides a base for the replication and roll out of the technology across globalterritories". As a result of this short-term concentration in Australia, there is norequirement for a permanent presence in London and therefore the roles of ChrisNash (CEO), and Philip Newell (FD), are no longer necessary and their employmentand directorships with the Company will cease with effect from today's date. The duties of the CEO will be undertaken by Mark McNamara (Chief OperatingOfficer) who, with recently appointed Brian Davies (General Manager), areresponsible for the day-to-day activities at Young. Rodger Sargent, aNon-executive Director is the new Finance Director, a role he has previouslyfilled. John Gunn, Chairman, commented "Chris and Philip have done a first class job forHydrodec during their brief time, including the acquisition of OTS, a key stepforward in The Company's development. I wish Chris and Philip every success intheir new ventures". For further information please contact: John Gunn, Chairman HydroDec Group plc Tel: 020 7236 6236 Nick Fox M: Communications Limited Tel: 020 7153 1530 This information is provided by RNS The company news service from the London Stock Exchange