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STM assist IPPC Company Owner speed up Acquisition Transaction

STM assist IPPC Company Owner speed up Acquisition Transaction

For reasons of confidentiality we are unable to give the full details of the site and companies concerned for this case study.

STM were recently requested by an IPPC Company owner (Client) to undertake a Environmental Due Diligence Assessment (EDD) for their operational industrial property. The company, a very successful operational metal works and was due to be sold to foreign investors. The transaction had stalled due to the potential that the land may have been contaminated. As a result the purchaser was reluctant to take the next step.

STM were called in by the Client to undertake a Phase 2 assessment of the site. The Client had three main requirements:

  • As time was of the essence, the works had to be completed quickly;
  • As the site was operational the works had to be completed without impacting day to day operations;
  • As the transaction was confidential, the works had to be completed discretely.

The site was in a very sensitive location being located adjacent to a water course and water treatment works and was underlain by a challenging geology consisting mainly of sandstone.

STM managed to apply a cost effective drilling solution to the challenging sandstone geology that was encountered managing to complete 6 boreholes to depths of 8m in one day. The works were carried out at the weekend meaning the business was not impacted at all and discretion was assured.

STM published the EDD report within three weeks of the instruction to proceed. To the delight of both the Client and the purchaser the results of the soil sample analysis and generic risk assessment undertaken proved that not only was the site not contaminated, it was in a better condition than most residential sites to be found in the area!

This was likely due to the fact that when the Client started up the operation, they installed a protective 600mm concrete slab across the entire site. The company were also keenly aware of the need to manage their environmental impacts and operated an Environmental Management System, with certification to ISO 14001. This included the  management of all aspects of IPPC process including the implementation of Best Available Techniques  (BAT) and  involving external verification by qualified environmental auditors. The company was also ISO 9001 Quality Management certified.