A company that provides specialist lamp and battery recycling services has expanded its geographical coverage across the UK after buying one of its rivals.

Mercury Recycling plc, which opened the UK’s first lamp recycling site 12 years ago, has bought the Envirolite Group.

The acquisition complements Mercury’s existing operations by adding sites to its business in the South, Midlands and Scotland.

Envirolite was bought for £1.1 million in cash. On completion Mercury paid £850,000 with the balance due in the next three months.

Mercury plans to rationalise Envirolite by incorporating it into its cost structure and managing the business from its headquarters in Manchester.

The acquired business, which provides its services to consumer and industrial users, comprises Envirolite, Envirolite Midlands and Bakersfield Environmental Services. In the year to April 2008, its un-audited management figures reported a £248,000 pre-tax profit from sales of more than £1 million.