Newalta to acquire Nova Pb battery recycling operation
CALGARY, ALTA-Newalta Income Fund has signed a purchase agreement to acquire Nova Pb, Montreal battery recycling company, for $55 million. Nova operates Canada's largest integrated lead battery recycling facility on a 20-hectare (50-acre) site in Ville Ste-Catherine, on the south shore of Montreal, 12 kilometres from Newalta's new transfer station in Chateauguay. The facility's two long-body rotary kilns are capable of processing up to 200,000 tonnes of used batteries and can produce up to 100,000 tonnes of recycled lead per year. Although the company is currently operating at 50% capacity, with only one of its kilns in operation, Newalta sees opportunities to add value using its national facility network to drive additional batteries to the Nova facility. "The addition of Nova's industry-leading operations and experienced people doubles Newalta's presence in Québec, provides tremendous opportunity to expand our market coverage in the province, and diversifies our services for our customers in eastern Canada," said Newalta president and CEO Al Cadotte. With a skilled workforce of 115 people, Nova supplies custom lead alloys to the automotive and industrial battery manufacturing industries. The transaction is expected to close on November 1, 2007, subject to certain conditions and the receipt of all regulatory approvals.