24th May 2006 07:02
Augean Plc24 May 2006 24th May 2006 Augean Plc ('Augean' or 'the Company') Acquisition Augean Plc, the UK's leading hazardous waste business, is pleased to announcethat it has today acquired Credential Hazardous Waste ("Credential Hazardous"),the hazardous waste collection and transfer business of Credential EnvironmentalLimited, for a consideration of £8.13 million, payable in cash. The activities of Credential Hazardous are complementary to those of ProactiveWaste Solutions, which was successfully acquired by Augean, in August 2005. Thetwo businesses will in future trade as Augean Treatment. Credential Hazardous collects sorts and stores hazardous waste and prepares thematerials collected for secure bulk transfer to the ultimate disposal site. Thebusiness includes two waste transfer stations at Hinckley, Leicestershire andWorcester. Both locations are licensed to take a broad range of hazardous wastesincluding liquids, sludges, solvents, alkalis and oil mixtures. The total consideration of £8.13 million is payable on completion and will besatisfied from a new £15 million term loan facility with the Bank of Scotland. In addition, as part of this transaction, Augean will purchase the freehold ofthe Worcester site for an additional £1.3m and has acquired an option topurchase the Hinckley site. The consideration for the freehold of the Hinckleysite is £1.1 million. The book value of the assets being acquired and to be acquired is £2.7 million. In the year ending 31 March 2006, Credential Hazardous generated (unaudited)sales of £3.9 million and (unaudited) EBITDA of £0.8m. John Huntington, CEO of Augean Plc commented: "This acquisition enhances Augean's geographic reach as well as securingimportant volumes of hazardous waste that, where appropriate, can be treated anddirected to Augean's extensive hazardous waste landfill facilities. CredentialHazardous will be integrated into our existing Waste Treatment business. TheDirectors believe that the acquisition is further evidence of Augean's strategyto become the leading provider of hazardous waste solutions in the UK." Augean was advised on the acquisition of Credential Hazardous by KPMG CorporateFinance. Ends For further information please contact: John Huntington, Augean Plc - 01937 844980 Billy Clegg, Financial Dynamics - 020 7831 3113 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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