acquires delvex industrial cleaning pty ltd

TOX FREE SOLUTIONS LIMITED ABN 27 058 596 124 Operational Office: Registered Office: Lot 4, Mason Road Level 2, 45 Stirling Hwy Kwinana WA 6167 Nedlands WA 6009 Tel: (61 8) 9439 2362 Tel: (61 8) 9389 8799 Fax: (61 8) 9439 2363 Fax: (61 8) 9389 8327 Postal Address: Website: PO Box 108 www.toxfree.com.au Kwinana WA 6966 29 November 2005 AUSTRALIAN STOCK EXCHANGE LIMITED Electronic Lodgement Dear Sir / Madam Tox Free Solutions Ltd acquires industrial services company – Delvex Industrial Cleaning Pty Ltd Tox Free Solution Ltd (Tox Free) is pleased to announce the successful acquisition of Delvex Industrial Cleaning Pty Ltd based in Henderson, Western Australia for the total purchase price of $2,500,000 (comprising $2,244,500 and 2,555,000 fully paid ordinary shares in Tox Free Solutions Ltd). The acquisition will take effect as of 1 January 2006. Delvex is a leader in the industrial services market in Western Australia having been established since 1978. The business is particularly focused on servicing the expanding ship building and port services of Henderson and Fremantle. The company’s main activities include: • On-site Industrial Cleaning, • Tank Cleaning and Degassing, • Bilge Cleaning, • Liquid Waste Collection Services, • Liquid Waste Treatment. The Company has two licensed liquid waste treatment facilities strategically located in Henderson. The acquisition enables Tox Free to expand its portfolio of services into Industrial Cleaning, Onsite Services, Liquid Waste Treatment and Liquid Waste Collection. The business also provides synergistic benefits to Tox Free’s other subsidiary Tox Free Kwinana (formerly Eli Eco Logic) and cements Tox Free’s position as a leader in the management of industrial and hazardous waste in Western Australia. Based on present earnings the Delvex business will contribute an additional $500,000 pa (EBITDA) directly to the Tox group. Further to this Tox Free believes the Delvex business will also immediately add a further $225,000 pa (EBITDA) from synergetic use by Tox Free (Kwinana) of the Delvex site and equipment. - 1 -
Delvex has considerable plant and equipment which can be used to compliment the current services provided by Tox Free. Equipment includes two licensed liquid waste treatment facilities, a tanker and truck fleet consisting of 6 liquid waste tankers and ancillary vehicles, specialised high pressure water blasting and dry ice cleaning equipment. Considering the direct addition to Tox Free EBITDA of $725,000 pa, the synergistic benefit the business brings to the rest of the Tox Free group and the expansion of Tox Free’s services into the growing industrial services market, Tox Free believes the purchase price of $1,500,000 for the business and $1,000,000 for the assets is an attractive deal. The upside for Tox Free is the growth potential for the Delvex business which Tox is keen to expand rapidly throughout Western Australia. On behalf of the Board I J BURTON Director About Tox Free Solutions Ltd (ASX code: TOX) Tox Free Solutions Ltd is a leader in the management of industrial and hazardous wastes. The company presently has two licensed waste management facilities. One is located in Kwinana in Perth’s Heavy Industrial area and the other in Port Hedland within the mining and oil and gas resource area of the Pilbara. The company has unique licenses and best practice technologies that enable the treatment of a wide range of industrial and hazardous wastes. - 2 -