US waste company in takeover talks with AES
The firm has entered into final sale talks with US company EarthFirst Technologies, though no financial details have emerged.
AES was set up in 1996 as Waste Recycling Ireland but changed its name to Advanced Environmental Solutions in 2001 and has undergone a rapid expansion.
In 2002 it spent close to €30 million on 10 acquisitions including O’Brien’s Waste Recycling and Erwin Cobbe Waste Disposal. The Naas-based company spent a further €22m on takeovers in 2002.
The last set of accounts filed, for the year to end June 2003, show turnover shot up from €13m to €31m. However, its losses also jumped to €4.6m.
Earlier this year the company appointed Davy Stockbrokers to look into the possibility of a sale. It has also raised around €6m to continue to fund its expansion.
Managing director Patrick Alley said recently that it was not the case that the group was looking for a buyer but needed a significant level of investment to continue growing.
According to its accounts the firm was disappointed with its financial performance in 2003 having made significant investments in acquiring businesses and equipment.
The company employs just under 200 people, mainly in the midlands and has around 50 shareholders. Mr Alley is one of the largest with 247,484 of the 2.5 million issued shares. The company could be not reached for comment last night.
EarthFirst said in a statement that it had signed a letter of intent to buy AES and would conclude the deal in 60 days. EarthFirst Technologies says it looking to develop alternative energy and waste treatment technologies.
The company is listed on the Nasdaq stock market in the US, but little financial details about EarthFirst could be found last night. Its shares traded 9% higher when the takeover was announced. According to reports in the US, the company had revenues in its last quarter of just $15,000 and a net loss of $2m.
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