1st Apr 2015 07:55
LONDON (Alliance News) - Hydrodec Group PLC Wednesday said it has agreed to acquire the business, assets and trade name of Eco-Oil from Eco-Oil International Ltd for GBP2.4 million, a deal that will boost its UK waste oil collection and recycling business and give it opportunities to improve the efficiency of the business it is buying.
The oil re-refining group said the Eco-Oil business is a UK waste oil collector and supplier of recycled industrial fuel oil into the power and road stone industries and one of four significant providers of waste management services to the marine industry in the UK.
Hydrodec said the acquisition will be made using existing cash reserves.
"The combined businesses will consolidate Hydrodec's position as the UK's leading service provider in used oil collection, products and associated waste services. The combined entity will offer significant opportunities to improve the efficiency of the business model as well as improve a market leading total waste solution for our customers in the automotive and industrial sectors," said Hydrodec.
Eco-Oil reported revenue of GBP26.5 million in 2014, which led to earnings before interest, tax, depreciation and amortization of a GBP900,000 loss.
Hydrodec shares were down 0.4% to 7.10 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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