Western Australian waste management company Tox Free Solutions Ltd has acquired a Brisbane watse treatment plant for $4.6 million.
Western Australian waste management company Tox Free Solutions Ltd has acquired a Brisbane watse treatment plant for $4.6 million.
The full announcement is below:
- Acquisition of AGR Industries' Liquid Waste Treatment Facility in Brisbane, Queensland.
- Based on forecast financials the acquisition is expected to contribute $1,000,000 pa EBIT to the Tox Free group.
Tox Free Solutions Limited ("Tox Free") is pleased to announce the acquisition of AGR Industries' liquid waste treatment facility located in Brisbane, Queensland. The acquisition is effective 1 October 2007.
The details of the acquisition are described below.
AGR Liquid Waste Treatment Facility
AGR operates a licensed liquid waste treatment facility in Coopers Plains, Brisbane. The facility utilises patented technology to process liquid wastes into a beneficial soil amendment agent suitable for the remediation of land affected by sodicity. The technology has been proven to ameliorate the physical and chemical properties of affected soil so as to significantly increase its productivity.
AGR have been in operation since 2000 and have a wealth of experience in liquid waste processing and the manufacture of soil amendment agents. The Directors and key employees of AGR will continue to operate the business under a management contract with Tox Free. In due course, Tox Free and AGR intend to develop other value added services to offer Tox customers throughout Australia.
The purchase price for the business and assets is $3,100,000 cash. The acquisition will be funded from cash flow and Tox Free's existing bank facilities. A further $1,500,000 will be paid as a performance bonus to the vendors upon achieving $1,000,000 EBIT in the following 12 months.
The AGR acquisition greatly strengthens Tox Free's position in the waste management sector. The company now has a strategic base on the eastern seaboard of Australia to expand its existing services. It also provides Tox Free with access to patented waste treatment technology to enhance Tox Free's position as the leader in the management of industrial and hazardous wastes.
The Board of Tox Free is very excited about the future prospects for the acquisition.
