Majestic Corporation Plc (AQSE:MCJ) has conditionally struck a deal to acquire Telecycle Europe Limited, a Deeside-based recycling firm for up to £2 million.
Already profitable and a partner of Majestic, the purchase brings with it a fully licensed and ISO-certified facility as well as a consistent supply of recyclable materials.
The transaction is set to deliver immediate financial gains and operational efficiencies, enhancing Majestic's margins and expanding its UK network.
Payment will be staggered, beginning with an initial £150,000 followed by monthly instalments, contingent on Telecycle meeting the agreed delivery targets. The agreement is subject to the completion of due diligence and other standard conditions.
"We are delighted to have conditionally agreed to acquire Telecycle and expand our UK operations," chairman Peter Lai.
"The UK market's commitment to sustainability and recycling makes this acquisition a crucial driver for future growth. We look forward to integrating Telecycle into Majestic and updating shareholders on our progress."
As owner of Telecycle, Lai wasn't part of the deal's decision-making process. "Having exercised reasonable care, skill and diligence, the directors of Majestic (excluding Peter Lai) deem the terms of the SPA [agreement] to be fair and reasonable for Majestic's shareholders and an accretive acquisition for Majestic," investors were told.
Majestic is a specialist in sustainable recycling, focusing on recovering precious and base metals from everyday materials like electronics, catalytic converters, and solar and battery components.
The company works with major global brands, including manufacturers, multinationals, financial institutions, and government entities.