Waste management business sells broker division
Wetherby-based Augean, one of the UK’s leading specialist waste management businesses, has sold total waste management broker, AIS, to Regen Devco for £3.8m.
Regen Devco, a subsidiary of Regen Holdings Limited, is based near Grantham.
AIS Limited reported a revenue of£8m, EBITDA of £500,000 and losses of £400,000 for the year ended 31 December 2017.
Net cash outflow for the year ended 31 December 2017, before central costs, was £600,000 and net assets were £2.3m. The profit on sale is expected to be £1.3m after costs of sale and provisions. Disposal proceeds will be used to pay down existing debt facilities.
As part of the disposal, all 35 AIS employees will transfer with the AIS business. AIS has signed a three-year exclusive supply agreement to use Augean for its hazardous waste disposal and treatment. This will include the East Kent High Temperature Incinerator which Augean will retain.
Jim Meredith, executive chair, said: “We are pleased to announce the disposal of AIS to Regen Devco while retaining the ongoing hazardous waste disposal. This transaction forms part of our plan to streamline the Group, concentrate on cash generation to reduce debt and focus on rebuilding the core strengths of the Group moving forward.”
Giles Taylor and Anthony Barrett at KPMG advised Augean plc on the disposal of total waste management broker AIS Ltd to Regen Devco Limited, a subsidiary of Regen Holdings Limited.
