Lamp and mercury waste recycler Mercury Recycling has been sold by parent company Ironveld in a more than £1.5m cash deal.
Ironveld, which processes pig iron and vanadium, sold the Manchester-based subsidiary to Environmental Safeguard, part of Environmental Resource Group.
Environmental Safeguard is a provider of environmental management products, systems and solutions.
The deal comprised of a purchase price of £1.45m and a working capital adjustment of £125,000.
Mercury Recycling had contributed to Ironveld’s pre-tax loss of approximately £25,000 in 2012. Mercury’s net assets as of 30 June 2013 were approximately £1.3m.
Ironveld said the sale was in line with its company strategy to focus its resources on the progression of a pig iron and vanadium project in South Africa and that the deal would allow Mercury Recycling’s management “to better realise the potential of that business”.
Giles Clarke, chairman of Ironveld, said the Mercury Recycling was no long “a key area” of the company activities.
In December 2012, Mercury Recycling lodged a complaint with the Office of Fair Trading (OFT) alleging that electronic equipment manufacturers were operating a “cartel” in the WEEE recycling sector. The firm asked for an inquiry into claims of anti-competitive practices carried out under the support of compliance scheme Recolight.
However, the OFT dropped the complaint in June without opening an investigation on the allegations citing lack of evidence as a reason for the decision.