West Perth-based waste management company Tox Free Solutions has further expanded its presence on the east coast, announcing today its decision to acquire Melbourne-based Envirochem Technologies for $3.1 million.
The acquisition is subject to due diligence and completion is expected to occur in May.
Envirochem is a leading provider of chemical waste collection, treatment and disposal services in all major cities throughout the east coast of Australia including Tasmania.
Envirochem operate a licensed hazardous waste management facility located in Melbourne. The facility is licensed to treat a broad range of industrial and hazardous wastes and has been in operation since 1993.
The acquisition of Envirochem will complement Barry Bros. Melbourne operations as well as Tox Free's other hazardous waste facilities on the east coast of Australia.
Mike Pola, Director of Envirochem, has more than 20 years experience in the hazardous waste management industry and his skills and intellectual property will positively contribute to the growth opportunities on the East Coast of Australia for Tox Free.
Mr Pola will continue employment with Tox Free for a minimum term of two years.
The purchase price for the business assets is $3,137,500, comprising $3 million in cash and 55,000 shares in Tox Free.
Envirochem's Earnings Before Interest and Taxes (EBIT) has averaged $600,000 over the last three years. As at 31 December 2009 Envirochem were on target to achieve EBIT of $700,000.
The value of Envirochem's assets is approximately $1 million which are included in the sale price. Tox Free expect to improve the financial performance of the business through synergies with Barry Bros in Victoria, Tox Free (NSW) and Tox Free (Qld).
