US operator Earthfirst Technologies is one of a number of publicly-quoted companies that are seeking to buy, or invest in, privately held Irish waste-management business, Advanced Environmental Solutions (AES), it emerged yesterday.
Earthfirst yesterday announced that it had signed a letter of intent to buy 100 per cent of AES in a shares-only deal. Its statement said that both companies had 60 days in which to perform due diligence, complete a business plan and establish performance milestones.
Last year, AES had sales of €26 million and earnings before interest, tax and write-offs of around €400,000.
The company recently raised close to €7 million through the issue of convertible loan notes, and hired Davy Stockbrokers to carry out a strategic review of the business.
The review includes seeking a strategic partner for future development.
Last night, AES issued a statement confirming that it had signed a letter of intent with Earthfirst.
It added that it was not a purchase agreement, and was instead an indication of the US company's interest in pursuing further talks with AES.
Chief executive, Mr Patrick Alley, said that Earthfirst was one of a group of Irish, European and north American companies that have expressed interest in "working with" the company. It is understood that the other parties want to either buy AES or take a stake in it.
A deal with Earthfirst would give AES access to the US company's technology. AES has to use landfill for some of its activities and wants to cut its dependence on this in order to boost profitability and to ensure that it complies with EU directives on landfill reduction.
Earthfirst specialises in technology that processes and breaks down solid and liquid waste, including products like tyres, oils and engine anti-freeze.
If it completes the purchase of AES, it will use the company as a base to sell its technologies in Europe.
Earlier this year, AES and Oyster Technology Investments, a fund headed by former Smartforce boss, Mr Bill McCabe, agreed to join forces to sell a new waste recycling system to Irish local authorities. The two invested €10 million in the project. That system was also geared at reducing landfill dependence.
AES was founded in 1996 as Waste Recycling Ireland Ltd, and changed its name after taking over a number of smaller businesses in the midlands.
Earthfirst is a small publicly-traded company in the US and is headquartered in Tampa, Florida. Last year it made a loss $1.4 million.
