HRL Holdings (ASX:HRL) is acquiring Canberra-based asbestos and environmental consultants AAC Environmental Pty Ltd for up to $1.5 million.
This will allow the company to tap into the well-publicised loose-fill asbestos insulation “Mr Fluffy” demolition program in the Australian Capital Territory.
Under this program, the ACT Government is buying Mr Fluffy homes from owners for the purpose of demolition and re build.
There are 1,022 homes included in the Mr Fluffy buy-back scheme and of those 1,014 owners have indicated that they wish to participate in the program.
AAC are actively involved in tendering of all of the services required for the demolition to proceed:
- Asbestos removal under friable conditions with air monitoring;
- Visual and air monitoring clearance post removal;
- Demolition of home with air monitoring;
- Visual and air monitoring clearance post demolition;
- Soil testing.
The acquisition consideration consists of a partial payment on completion of the AAC Acquisition of $1 million in cash and an earn-out consideration of up to $500,000.
HRL will fund this out of its current cash holdings and existing banking facilities.
The AAC acquisition will settle by the end of September.
Upon completion, HRL will operate 5 accredited laboratories located in Brisbane, Darwin, Canberra, Christchurch and Wellington, of which four will have been added in the past 12 months.
The company had revenue of $2.1 million in the fourth quarter ended 30th June 2015.
