Cascal NV acquires 100% of Servicomunal and Servilampa in Chile

Jul 01, 2008 (M2 EQUITYBITES via COMTEX) -- HOO | Quote | Chart | News | PowerRating -- Cascal NV (NYSE:HOO), a provider of water and wastewater services in seven countries, declared on 30 June that the company has entered into an agreement to acquire 100% of the Servicomunal and Servilampa companies located immediately to the north of Santiago, Chile.

These two new acquired businesses operate regulated water and wastewater concessions and will be progressively combined with Cascal's existing operations to provide greater efficiencies. The acquisitions were funded by utilising approximately USD22m from the company's existing corporate debt facility. Cascal, over a term of three years, anticipates the acquisitions to generate revenues from approximately USD6m to USD8m and EBITDA margins improving from approximately 40% to 50%. The acquisitions reportedly increase Cascal's presence in Chile to nearly 500,000 residents.

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