On June 22, 2006, Bennett Environmental Inc. (TSX:BEV)(AMEX:BEL) announced that it has entered into an agreement to purchase Trans-Cycle Industries Inc. (TCI), Kirkland Lake, Ontario.
The purchase price will be approximately $2.1-million plus or minus an adjustment for working capital which will be determined as at the closing date, currently scheduled for June 29, 2006.
TCI is a North American leader in the recycling, dismantling and disposing of obsolete electrical equipment, including transformers, ballasts, capacitors and lead-shielded cable. TCI also has a broad set of permits in Ontario to transport, process and store PCB contaminated waste and operates a state of the art facility in Northern Ontario.
According to Al Bulckaert, Bennett’s President and CEO, this acquisition will better position Bennett, along with its facility in Cornwall, Ontario, Material Resource Recovery (MRR) to serve customers who are looking for a full service provider for handling their PCB contaminated wastes. The TCI acquisition will add $5- to $6 million in revenue annually.
The federal government is set to renew the federal PCB regulatory framework, which, when implemented, will see the end of use of equipment containing PCBs and the destruction of PCB material containing 500 mg/kg or more by December 31, 2009. When these regulations are enacted Bennett expects that there will be an increased demand for both TCI and MRR’s services.
Bennett Environmental Inc. is a North American leader in thermal treatment services for the remediation of contaminated soil.
For further information about the agreement, contact Andrew Boulanger, Bennett VP and CFO, at 905-339-1540 ext. 210