Tomra signs contract with CAMCO Recycling
The purchase price for CAMCO is USD 1.2 million, representing 5 times pre-tax earnings. The revenues for 2000 are expected to be in the range of USD 8 to 10 million. The transaction will have an effective date as of April 1, 2000.
This represents TOMRAs first significant investment in Canada and is part of an overall strategic effort to penetrate the Canadian market. Today, TOMRA is primarily represented only in the province of Quebec through its sales and service company, Les Systems Tomra. While most provinces have some form of deposit scheme, none have implemented an integrated recovery system incorporating information, administration, promotions, logistics, material marketing and value added processing.
With over 30 million inhabitants, 10 provinces and territories have enacted deposit schemes. Varying by province and territory, the deposit schemes contribute to recycling rates from 80- 96 % with over 4 billion containers returned. The CAMCO investment will be basis for establishing an understanding of the market opportunities, systems and in building solid distributor and retailer relationships.
Asker, April 10, 2000
Tomra Systems ASA
Erik Thorsen
President/CEO