Mercury Recycling acquires Envirolite Group

Mercury Recycling has announced that it has acquired the entire issued share capital of Envirolite, Envirolite Midlands Limited and Bakersfield Environmental Services Limited (the Envirolite Group) for an aggregate cash consideration of £1.1m.  Mercury will pay £850,000 in cash on completion with the balance of £250,000 being payable in cash three months after the date of completion, subject to any adjustments.

In the financial year to 31 March 2008, the Envirolite Group reported unaudited management figures pre-tax profits of £248,000 on sales of £1,058,000 and had gross assets valued at £473,000 at the balance sheet date.

The Envirolite Group provides lamp recycling services to consumer and industrial users, and currently operates from three locations in the South, Midlands and Scotland. The acquisition is complementary to Mercury's existing business, to which it brings new areas of geographic coverage. In addition, there will be opportunities to achieve further cost savings and economies of scale.

Mercury Recycling intends to rationalise the businesses, incorporating them into the existing cost structure, and managing them from its headquarters in Trafford Park. This will ultimately release cost savings and drive real synergies.                                            

Mercury Recycling will announce its preliminary results for the year ended 31 December 2007 on 9 May 2008.