TEG in £3m swoop
ORGANIC fertiliser group TEG has bought a rival firm in Norfolk as looks to further roll out its compositing technology.
The Preston-based group has acquired Banham Compost in a deal worth £3.1m which is being part funded by a placing of new shares.
TEG, whose customers include local authorities, waste management companies, food processors, farmers and landowners, said it is raising £1.9m by issuing 4.75million shares at 40p per share. The remained of the acquisition is being satisfied by an asset finance facility.
Banham operates a commercial compositing facility which handles around 28,000 tonnes per annum, and has potential for further development.
TEG chief executive Mick Fishwick, said the acquisition offers further development potential for the group which is pleased with the support it has received from new and existing investors.
He said: “On the back of recent and exciting progress by the company, this acquisition represents yet another significant step in the continuing roll-out and endorsement of TEG’s composting technology, as an attractive, efficient and cost effective alternative to Landfill and other forms of disposal, across the country.”
In March, the group revealed a six-fold hike in sales for the 12 months to December 31 from £2.1m to £12.7m on the back of new contract wins. Pre-tax losses more than halved from £3m to £1.4m.
TEG, which converts organic waste into natural fertiliser, said that increased government legislation continued to drive the development of renewable energy and food waste recycling.
