Ironveld Regulatory News (IRON)

8 May 2008 08:47

Mercury Recycling Group PLC08 May 2008 Mercury Recycling Group PLC ("Mercury Recycling") Acquisition Mercury Recycling, the specialist lamp and battery recycling services group, ispleased to announce that it has acquired the entire issued share capital ofEnvirolite Limited, Envirolite Midlands Limited and Bakersfield EnvironmentalServices Limited ("the Envirolite Group") for an aggregate cash consideration of£1.1 million. Mercury will pay £850,000 in cash on completion with the balanceof £250,000 being payable in cash three months after the date of completion,subject to any adjustments. In the financial year to 31 March 2008, the Envirolite Group reported unauditedmanagement figures pre-tax profits of £248,000 on sales of £1,058,000 and hadgross assets valued at £473,000 at the balance sheet date. The Envirolite Group provides lamp recycling services to consumer and industrialusers, and currently operates from three locations in the South, Midlands andScotland. The acquisition is very complementary with Mercury's existingbusiness, to which it brings new areas of geographic coverage. In addition,there will be opportunities to achieve further cost savings and economies ofscale. Mercury Recycling intends to rationalise the businesses, incorporating them intothe existing cost structure, and managing them from its headquarters in TraffordPark. This will ultimately release cost savings and drive real synergies. Mercury Recycling will announce its preliminary results for the year ended 31December 2007 on 9 May 2008. Enquiries: Mercury RecyclingBryan Neill, Managing Director 0161 877 0977 Blue Oar Securities PlcJohn Wakefield, Corporate Finance Director 0117 933 0020 This information is provided by RNS The company news service from the London Stock Exchange