The acquisition was for an initial cash sum of £1.8 million, as well as repaying or assuming £883,000 of the company’s debt facilities. A further deferred payment will be made based on Envirocare’s performance over the next 12 months, with the total consideration being capped at £4 million.
Warwickshire-based Envirocare is a nationwide environmental services company with five offices across the UK. Established in 1971, the company provides pest control services to sectors including food retail and government bodies.
The trade and assets of Glasgow-based GP Environmental, which was acquired by Envirocare in April 2008, have been sold to local management and were not included in the deal with Green Compliance.
Excluding GP Environmental, Envirocare reported sales of £3.7 million and net profits of £307,000 for the financial year ending April 2010.
This is the eighth acquisition made by Green Compliance since February and its first in the pest control sector. The energy services and consultancy company acquired the water treatment business Pure Group Management in early July.
The deal was financed from existing cash as well as £2.1 million bank debt, increasing Green Compliance’s debt facility with HSBC to £4.2 million.