Waste-to-energy provider Environmental Group Limited has entered a purchasing agreement for RCR Tomlinson’s Energy Services business, to be completed in January.
With total liabilities of over $500 million and cash and equivalents of $89.9 million, RCR are looking for avenues to restructure the engineering group and reduce longstanding debts.
The move comes after RCR entered voluntary administration in November last year, the company has operated in Australia’s engineering and construction space for 120 years.
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The Australian service provider generated $21.5 million in revenue throughout the 2018 financial year, with before interest and tax benefits of $1.5 million.
McGrathNicol Restructuring Partner Jason Ireland who is overlooking the company’s administration said the purchase is an excellent outcome for all involved.
“This transaction maintains continuity for many RCR customers and suppliers, and preserves the entitlements and jobs of over 50 employees. It is an excellent outcome for those stakeholders,” Mr Ireland said.
An EGL spokesperson said the acquisition is part of the company’s strategy to establish environmental businesses and waste-to-energy production in each Australian state, to further improve environmental conditions.
“In particular, RCR Energy Service is an essential link in our strategy to build a bio/waste-to-energy platform as part of the technology acquired enables a combination of gases and waste energy sources to be used to produce electrical power or steam,” an EGL spokesperson said.
The sale follows RCR O’Donnell Griffin’s successful offloading of their rail business to John Holland late last year.
Administrators McGrathNicol has withheld the purchase price of RCR Energy Services until the end of January.