RedT offloads legacy Camco business in management buyout

Energy storage solutions company RedT Energy has completed the divestment of its legacy Camco business, it announced on Friday, with the sale of its wholly-owned subsidiary Camco International Group.

The AIM-traded firm said the business provided project development and asset management services to biogas projects in the United States.

Over the last three financial years, it had contributed £0.2m per annum to group results from operating activities.

RedT said CIG was sold to an entity controlled by Jim Wiest, its managing director.

Cash receipts from the sale consisted of a distribution of $1.0m to RedT, funded by a loan into CIG from a third party, as well as $0.5m of further consideration payable in two equal instalments, with the first due 30 April and the balance due 31 July.

“It was agreed that working capital balances, including cash of $0.5m, would remain in CIG as part of the sale resulting in a net cash benefit to RedT as a result of the transaction of $1m,” the RedT Energy board said in its statement.

“This will be used to fund the RedT business during the strategic review announced on 14 March.

“At the time of sale, CIG had net liabilities of $0.3m, including the $1m loan liability.”