Industrial specialist snapped up by Augean in £14m deal
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WASTE management firm Augean has acquired a £7.0m-turnover business in a £14.0m deal.
The Wetherby-based waste management giant has bought Colt Industrial Services, a service provider to the petrochemical, offshore and rail industries.
The business has been based in Hull for 25 years.
An initial payment of £9.2m is topped by further considerations of £3.65m (by October 2017) and £1.0m (by October 2018), subject to Colt securing certain additional contracts during the time period.
Colt Industrial Services is a specialist provider, undertaking tank cleaning, asbestos removal and tanker haulage amongst other operations. It turned over £7.1m in the year to 31 December, returning an EBIDTA of £1.4m and pre-tax profits of £1.1m
The acquisition will enhance Augean’s industry and infrastructure business, complementing the group’s treatment and disposal services. 75 employees, including executives, will be transferred. However, on its website, Colt states that it employs 120.
Augean itself has had a transformative period. In March, it announced that revenues had jumped 11% to £61.0m for the year to 31 December 2015, whilst pre-tax profits leapt 12% to £6.0m.
The 343-strong business, which is undertaking three-year turnaround plans, indicated its intentions to grow through non-organic means.
Dr Stewart Davies, chief executive officer, commented: “We are delighted to announce the acquisition of Colt as we continue to strengthen Augean’s position in the UK hazardous waste management market.
“The acquisition is immediately earnings enhancing and creates synergies with our existing service offering, enabling the Group to address a wider breadth and depth of client needs and adding new top-tier clients.
“It also accelerates our strategy to grow shareholder value by developing sustainable market positions and providing customers with innovative solutions.”
Dow Schofield Watts led the sale process and advised the vendors.
The Walker Morris Corporate Department, led by John Hamer, and investment bank Altium advised Augean.
Roger Esler, corporate finance director at Dow Schofield Watts in Yorkshire, commented: “We are delighted to have advised this unique and highly specialised business on its sale to such a strategically motivated acquirer. Colt punches well above its weight by reputation, customer base and service delivery.
“Consequently, there was wide and international interest in the business but it was highly rewarding to find that the most compelling fit was with another dynamic Yorkshire business. Colt will undoubtedly thrive as part of the Augean Group.”