Silverdell Acquires Kitsons Environmental Europe Ltd
Silverdell announces that on 23 July 2013 its subsidiary, Euro Dismantling Services Ltd ("EDS") acquired the business and certain assets of Kitsons Environmental Europe Limited (In Administration) (the "Kitsons Business"), thereby keeping the Kitsons Business within the Group. The Kitsons Business will operate as a separate division of EDS, with the objective of maximising cost efficiencies between the existing EDS division and the Kitsons Business and to facilitate a seamless transfer of ongoing customer contracts and relationships to EDS.
The consideration for the acquisition is payable in cash on a deferred basis and is capped at £8 million (subject to downward adjustment (if applicable) following the completion of a valuation of the Kitsons Business by an independent valuer). The deferred consideration is intended to be satisfied from the Group's banking facilities at that time.
Pursuant to the acquisition, the majority of the owned assets of the Kitsons Business will be transferred to EDS, including the intellectual property, plant, equipment and vehicles and the business rights of the Kitsons Business. Furthermore, all Kitsons' employees will transfer to EDS. The Health & Safety Executive has supported the business transfer from Kitsons to EDS and transitional arrangements are ongoing.
As a result of an internal reorganisation the Kitsons Business includes the business previously contained within another Group subsidiary, Silverdell (UK) Limited. For the financial period ending 30 September 2012 these two subsidiaries reported revenue of approximately £51.2m in aggregate and Profit Before Tax of £2.0m in aggregate.
In tandem with this corporate reorganisation, the Group is considering its options for financial restructuring. The Board is currently undertaking a review of its revised cashflow forecasts with its bank, HSBC in order to secure suitable committed funding for the Group prior to seeking to lift the suspension from trading of Silverdell's shares from AIM. HSBC has indicated its continued support.