The TEG Group, the AIM-listed green technology company has acquired the business and assets relating to a composting operation at Hillbarton, near Exeter.
Preston-based TEG, which develops and operates organic composting and energy plants, has aquired the assets of Glendale Recycling Limited, a subsidiary of Parkwood Holdings PLC.
The acquisition is on a cash-free, debt-free basis for a nominal initial consideration of £1 with a further potential deferred consideration of up to £400,000 payable dependent upon the profit performance of the operation over the next four years.
The Board expects the site to operate profitably in its first 12 months following completion, with annual revenues of approximately £1m per annum. It is intended that TEG will supply waste from its brokerage business that is currently processed through third party operators, to supplement the existing waste supplies to the site.
The Hillbarton site is a combined In Vessel and Open Air Windrow composting facility.
It has a combined capacity of 34,000 tonnes per annum and is permitted to a capacity of 50,000 tonnes per annum, allowing the potential for future expansion.
The operation also benefits from established compost brands and supplies bagged compost products to the local retail market.
The site is leasehold and the lease has been assigned to TEG.
The current operating team have transferred to TEG under TUPE arrangements to ensure full continuity of operations.
Mick Fishwick, CEO of TEG commented: “We are delighted to have acquired this excellent facility from Glendale.
“It is a high quality operation, and one that we know well as TEG installed the IVC in 2008.
“The plant fits well from a geographical perspective, giving the company an outlet to service the South West of England, and we have identified some exciting opportunities for future growth.”