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Green Compliance Acquisition and Admission to AIM

12th March 2010


Zeus Capital are pleased to announce that they recently advised Green Compliance plc on its acquisition of Waterchem Limited and the re admission of the enlarged group’s entire issued share capital to AIM.

Green Compliance plc will pay an initial consideration of £5.534 million; to be satisfied by the payment of £4.0 million in cash, the issue of £533,919 of loan notes and the issue of new Ordinary Shares to the value of £1 million. Conditional on Waterchem achieving specified profit targets for the year ended 31 December 2010, further deferred consideration may become payable under the terms of the acquisition agreement; capped at a maximum of £4.0 million.

Waterchem Limited is primarily engaged in the provision of water hygiene and water treatment services to facilities management companies, hospitals, universities and local authorities. In addition Waterchem, through its wholly owned subsidiary Towerite Limited, provides independent risk assessments as required to comply with the Approved Code of Practice for Legionella Control guidance provided by the Health and Safety Executive.

Commenting on the acquisition John Prowse, CEO of Green Compliance plc, said:
“Waterchem is the first significant acquisition following the shift in the Company’s strategy towards building a business focused on “blue collar” compliance markets. Waterchem’s long history and strong reputation in the area of water hygiene is a hugely valuable addition to our group and provides a natural fit with our business strategy going forward”.