Deal for sale of waste businesses
WASTE management group Augean has today announced the sale of its Waste Network business, marking a “significant” change in the focus of the group.
The closure and proposed sale of the Wetherby-based business’s Waste Network division was announced in September and as part of this process, the division stopped operating in January and certain assets were retained to form a new business – Augean Integrated Services (AIS). The AIS operations are based at Cannock, initially supporting a small number of clients requiring total waste management services.
The remaining businesses of the Waste Network division have continued to trade during the first quarter of 2014 whilst the sale process has continued. Today, Augean has announced that transactions involving two separate purchasers have now been completed for the sale of these businesses and associated assets.
The first deal related to the business, site and assets based at Hinckley and have been sold to Greenway Environmental. The cash proceeds from this sale were £0.4m. A second transaction, with Cleansing Service Group, for the business based at Rochdale and the site at Worcester, is also complete. Cash proceeds of £0.8m from this sale take the total value received from the Waste Network sales to £1.2m, before project costs of £0.1m.
The total sales proceeds are less than the carrying value of the relevant assets and goodwill held by the group at December 31 2013, so will result in exceptional impairment charges of £4m which will be included in the group’s results for 2013.
Dr Stewart Davies, chief executive officer of Augean, which earlier this month completed a £15m refinancing, said: “The sale and closure of the former Waste Network division represents a significant change in the structure and focus of the Augean Group. The disposal is consistent with our ambition to grow the group’s activities in waste markets offering enhanced margins and more secure revenue streams.”
Walker Morris acted on the deal. The team was led by partner John Hamer with support from Judith Pike (partner) and Ben Lowen (solicitor). Walker Morris also advised Augean on its refinancing last week.
Grant Thornton provided corporate finance advisory services led by partner Ali Sharifi and manager Stephen Leah and supported by legal advice from partners John Hamer and Judith Pike and solicitor Ben Lowen of Walker Morris.
