Canada | Industrial waste management group Newalta has signed an agreement to buy Canada's largest lead recycling facility from Quebec-based Nova Pb Inc. for US$55 (Euro 39) million in cash and stock.
The deal includes US$45 (Euro 32) million in cash and $10 (Euro 7.1) million in Newalta trust units. It is expected to close November 1, subject to regulatory approvals.
'The addition of Nova's industry-leading operations and experienced people doubles Newalta's presence in Quebec, provides tremendous opportunity to expand our market coverage in the province and diversifies our services for our customers in eastern Canada,' Newalta CEO Al Cadotte says.
'This transaction provides further stability to our cash flows and immediate value to our investors, and adds another new recovery process technology for us.'
Nova operates the country's largest integrated lead battery recycling facility on a 20-hectare site in Ville Ste-Catherine, on Montreal's south shore.
The company employs 115 people and is a leading supplier of custom lead alloys to the automotive and industrial battery manufacturing industries.
The recycling site is 12 kilometres from Newalta's new transfer station. It has a capacity to process up to 200,000 tonnes of used batteries and can produce up to 100,000 tonnes of recycled lead annually.
Newalta Income Fund is headquartered in Calgary, and is active in the western oilpatch, focusing on industrial waste recycling and the environmentally sound disposal of solid, non-hazardous industrial waste.
