Canada firm takes over Celtic Technologies

Apr 2 2008 by Aled Blake, Western Mail

LAND remediation specialist Celtic Technologies has been acquired in a £7m deal by a Canadian company.

Toronto Stock Exchange-listed EnGlobe, a leading international environmental services business, has made the move in what it says is a step to “consolidate and strengthen” its existing European operations of its site assessment and remediation business unit.

EnGlobe operates its businesses in France and the UK through Biogenie, which has been active in the UK since 1998.

This transaction will establish EnGlobe, through the operations of Biogenie and Celtic Technologies, as a substantial provider of land remediation services in the UK, where the demand for housing, growing environmental concerns and regulations encouraging sustainable reuse and recycling have led to rising demand for the remediation of contaminated sites.

Aline Bélanger, interim president and chief executive of EnGlobe said, “We will now be better positioned, from both a geographic and technical perspective, to meet growing market demand across the UK where, for example, housing development is a national priority and much of the land available requires remediation.”

Celtic Technologies was founded in 1992 and is a ground remediation contractor with operating locations in Cardiff as well as northern England and the Midlands.

Remediation technologies practised by Celtic include, among others, chemical stabilisation with EvoCem, which was developed and trademarked by the company, in-situ dual-phase and multi-phase extractions, chemical oxidation, soil vapour extraction and bioremediation.

Together, the joint and complementary capabilities of Biogenie and Celtic add further critical mass to EnGlobe’s assessment and remedi-ation operations in the UK, EnGlobe said.

The Canadian parent said its vision for the business was to offer to the market the “combined expertise and products of both companies throughout this country and into Europe”.

Barry Ellis, the founder and managing director of Celtic Technologies, said, “This represents a unique opportunity to join forces and position our combined company as the leader at a critical time when the market requires reliable cost-effective land remediation solutions that we can provide.”

EnGlobe will acquire the shares of privately held Celtic Technologies for a total purchase price of £7m at closing through a combination of cash – £5.25m – and EnGlobe common shares – £1.75m.

Shareholders of Celtic Technologies will receive up to an additional £2m in cash and EnGlobe common shares if Celtic achieves certain performance levels in the future.

EnGlobe is an integrated environ-mental services company specialising in the management of organic-based waste streams and contaminated oils, with an emphasis on beneficial reuse.

The business offers solutions to municipal, commercial and industrial clients in Canada and the north-eastern US as well as in Europe.