RNS Number:9559T
Mercury Recycling Group PLC
08 May 2008
Mercury Recycling Group PLC ("Mercury Recycling")
Acquisition
Mercury Recycling, the specialist lamp and battery recycling services group, is
pleased to announce that it has acquired the entire issued share capital of
Envirolite Limited, Envirolite Midlands Limited and Bakersfield Environmental
Services Limited ("the Envirolite Group") for an aggregate cash consideration of
#1.1 million. Mercury will pay #850,000 in cash on completion with the balance
of #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 unaudited
management figures pre-tax profits of #248,000 on sales of #1,058,000 and had
gross assets valued at #473,000 at the balance sheet date.
The Envirolite Group provides lamp recycling services to consumer and industrial
users, and currently operates from three locations in the South, Midlands and
Scotland. The acquisition is very complementary with Mercury's existing
business, to which it brings new areas of geographic coverage. In addition,
there will be opportunities to achieve further cost savings and economies of
scale.
Mercury Recycling intends to rationalise the businesses, incorporating them into
the existing cost structure, and managing them from its headquarters in Trafford
Park. This will ultimately release cost savings and drive real synergies.
Mercury Recycling will announce its preliminary results for the year ended 31
December 2007 on 9 May 2008.
Enquiries:
Mercury Recycling
Bryan Neill, Managing Director 0161 877 0977
Blue Oar Securities Plc
John Wakefield, Corporate Finance Director 0117 933 0020
This information is provided by RNS
The company news service from the London Stock Exchange
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