News: Hot Rock to acquire environmental consulting and hazardous materials business

Hot Rock (ASX:HRL) has moved to acquire an unlisted profitable business involved in environmental consulting and hazardous materials testing and with a laboratory in Brisbane.

In an interesting acquisition, Hot Rock will acquire 100% of the shares in OCTIEF Pty Ltd, issuing up to 641,508,710 shares to OCTIEF which is currently worth about $4.49 million in total.

The deal is subject to approval by Hot Rock shareholders; the current owners of OCTIEF will receive an initial tranche of 320,754,355 shares.

The further shares are payable upon OCTIEF achieving earn out milestones including first half revenue of $1.75 million for FY2015 by December end; a laboratory established in Darwon and revenue for FY2015 of $4.25 million by 30 June 2015.

OCTIEF is an Australian private company owned by Integrated Holdings Group Pty Ltd.

OCTIEF carries out studies, including mine sites, contaminated land sites, buildings, soils and water, which need to be done as part of government and council development approvals for new project developments.

Part of the services offered also include industrial hygiene, asbestos and hazardous materials management, environmental services (air, water and soil including contaminated land), greenhouse gas emissions assessments, energy use assessments and specialised NATA-accredited laboratory analysis and on-site testing.

The deal is subject to shareholders approval and a report on the fairness and reasonableness of the acquisition.