EnGlobe Corp. expanding operations in the United Kingdom

    BURLINGTON, ON, March 25 /CNW Telbec/ - EnGlobe Corp. (EG -TSX), a
leading international integrated environmental services company, announced
today that it has completed the acquisition of Celtic Technologies Ltd. in the
United Kingdom, a move to consolidate and strengthen the existing European
operations of its site assessment and remediation business unit.
    This transaction will establish EnGlobe, through the operations of its UK
subsidiaries, Biogenie Site Remediation Limited and Celtic Technologies, as a
substantial provider of soil remediation services in the United Kingdom where
growing environmental concerns and regulations encouraging sustainable reuse
and recycling have led to rising demand for the remediation of contaminated
    "We will now be better positioned, from both a geographical and technical
perspective, to meet growing market demand across the UK where, for example,
brownfield housing development is a national priority and much of the land
available requires remediation." stated Aline Bélanger, Interim President and
Chief Executive Officer of EnGlobe.
    Celtic Technologies was founded in 1992 and is a ground remediation
contractor with operating locations in Wales, Northern England, and the
    Together, the joint and complementary capabilities of Biogenie and Celtic
Technologies add further critical mass to EnGlobe's site assessment and
remediation operations in the UK. The vision for the business is to offer to
the market the combined expertise and products of both companies throughout
this country and into Europe. "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 we can
provide." added Barry Ellis, the founder and Managing Director of Celtic
    EnGlobe will acquire the shares of privately held Celtic Technologies for
a total purchase price of (pnds stlg)7M at closing through a combination of
cash ((pnds stlg)5.25M) and EnGlobe common shares ((pnds stlg)1.75M).
Shareholders of Celtic Technologies will receive up to an additional     
(pnds stlg)2M in cash and EnGlobe common shares if Celtic achieves certain
performance levels in the future.
    Concurrently with the completion of the acquisition of Celtic
Technologies, EnGlobe also entered into an amended and restated credit
agreement with its lenders for $73 million to add Biogenie, its UK subsidiary,
as a borrower under the term facility and the revolver facility, to amend
certain financial covenants and to effect certain other amendments to the
original credit agreement. The funds advanced by the lenders at closing under
the amended and restated credit agreement will be used for the purchase price
for the acquisition of the shares of Celtic Technologies and working capital
adjustments related to the acquisition, with the remainder to be used for
transaction expenses and the reduction of the revolver as provided pursuant to
the Amended and Restated Credit Agreement.
    Certain nominees of ONCAP Management Partners L.P. and its affiliates
also simultaneously completed a private placement financing with EnGlobe for
the aggregate subscription price of $9.725 million. The ONCAP subscribers
purchased 7,375,000 Series 2 preferred shares of EnGlobe at $0.40 per share
and $6,775,000 of aggregate principal amount of Series B debenture, all on
terms and subject to conditions set out in a subscription agreement entered
into by and among the ONCAP subscribers and the Company. Pursuant to certain
financing fees associated with the private placement, the ONCAP subscribers
were also issued 470,745 preferred shares and $271,000 of aggregate principal
amount of Series B debenture.
    The preferred shares are voting securities and convertible at any time by
the holders thereof on the basis of one preferred share for each EnGlobe
common share. Holders of the preferred shares are entitled to receive, subject
to certain exceptions, a fixed, cumulative dividend per preferred shares equal
to 3% of the issue price per annum and are redeemable by the Company, at its
option, on or after March 31, 2014 at the issue price plus all accrued and
unpaid dividends. The Series B debenture is secured, non convertible and,
subject to certain exceptions, bears interest on the principal amount at 15%
per annum, compounded and payable quarterly with 3% per annum payable in cash
on each applicable interest payment date and 12% per annum capitalized on each
applicable interest payment date and added to the principal amount, all in
accordance with the terms of such debenture. The Company may repay all or a
portion of the principal amount of the debenture at any time without penalty
after the first anniversary of closing.
    The proceeds from the ONCAP financing will also be used to pay the
acquisition transaction expenses, to reduce the revolving portion of the
amended and restated credit agreement and for working capital purposes.

    About EnGlobe

    EnGlobe Corp. is a leading international integrated environmental
services company specializing in the management of organic-based waste streams
and contaminated soils, with an emphasis on beneficial reuse. EnGlobe offers
cost-effective solutions to municipal, commercial and industrial clients in
Canada, the north eastern United States, the United Kingdom and France through
its subsidiaries Biogenie, for site assessment and remediation, GSI
Environment, for organic waste management, and Tanknology Canada, for tank
testing and calibration.
    EnGlobe Corp. is listed on the Toronto Stock Exchange under the ticker
symbol EG. Additional information is available at www.englobecorp.com.

    Forward-Looking Information

    This press release contains forward-looking statements. Such statements
relate to, among other things, sales growth, expansion and growth of the
Company's business, future capital expenditures and the Company's business
strategy. While the Company considers these factors and assumptions to be
reasonable, they may prove to be incorrect. Forward-looking statements are
subject to inherent uncertainties and a number of factors could cause actual
results to differ materially from those in the forward looking statements,
including, but not limited to: general industry and economic conditions,
changes in the Company's relationships with its suppliers, pricing pressures
and other competitive factors, the availability and costs of fuels and
utilities, the results of the Company's ongoing efforts to improve cost
effectiveness, changes in regulatory requirements affecting the Company's
business and the availability and terms of financing. Other Risk Factors are
set out and described in the Company's Annual Information Form which is
available at www.sedar.com. Consequently, actual results and events may vary
significantly from those included in, contemplated by or implied by such
forward-looking statements. In evaluating forward-looking statements, readers
should specifically consider the various factors that could cause actual
events or results to differ materially from such forward-looking statements.
Forward looking statements are given only as at the date of this press release
and the Company disclaims any obligation to update or revise the forward
looking statements, whether as a result of new information, future events or
otherwise, except as required by applicable law.

For further information:

For further information: Investors: Aline Bélanger, Interim President
and Chief Executive Officer, EnGlobe Corp., (905) 335-2100 x 5026; Media:
Lynne Lagacé, Director, Communications, EnGlobe Corp., (450) 929-4949 x 255

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890