1st Apr 2014 09:23
LONDON (Alliance News) - The TEG Group PLC said Tuesday that it had acquired a composting operation at Hillbarton near Exeter from Glendale Recycling Ltd for a nominal initial consideration of GBP1.
Glendale is a subsidiary of Parkwood Holdings PLC.
The acquisition has a potential deferred consideration of GBP400,000 depending on the profit performance of the operation over the next four years.
TEG said it expects the operation to operate profitably in its first year following completion, and expects yearly revenues of around GBP1 million per year. It will supply waste from its brokerage business that its currently processed by third party operators to the site.
The site has a combined capacity of 34,000 tonnes per year, and is permitted to a capacity of 50,000 tonnes per year.
"The plant fits well from a geographical perspective, giving the Company an outlet to service the South West of England, and we have identified some exciting opportunities for future growth," said Chief Executive Mick Fishwick in a statement.
Shares in TEG were trading down 3.5% at 3.74 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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