The acquisition also includes Colt Holding’s wholly-owned subsidiary Colt Industrial Services.
Augean’s purchase comes as it seeks to enhance its Industry & Infrastructure business unit, adding ‘UK-wide’ coverage to its existing water and waste treatment and disposal infrastructure.
It was funded through Augean’s existing borrowing facilities, following the renewal and refinancing of its bank facilities in March 2016.
Colt
Colt, which earned £1.4 million EBITDA for the year ended 31 December 2015, was established 25 years ago by the Telford family and provides waste management, tanker haulage, specialist tanker cleaning and asbestos removal to major industrial companies, oil refineries, rail and utilities.
The audited revenue and profit before tax of Colt, on a pro-forma basis for the year ended 31 December, were £7.1 million and £1.1 million, respectively.
Commenting on the acquisition, the company states that Augean “has been looking for over a year for an opportunity like this”. It will continue to operate as Colt Industrial Services Limited out of its Hull-based offices.
Employees
And, as part of the acquisition, all 75 Colt employees will be transferred to the Augean Group, including certain key executives, who will remain in the business under service agreements.
Dr Stewart Davies, chief executive at Augean, said: “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.”
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