DCC PLC
13 November 2006
DCC Acquires Another British Waste Recycling Business
13 November 2006
DCC plc has acquired a 90% shareholding in Realpower Limited, the holding
company of Wastecycle Limited ('Wastecycle' or 'the Company'). Wastecycle is a
rapidly growing, Nottingham based, recycling and non-hazardous waste management
business, led by its shareholders, Chairman, Mike Shearstone and Managing
Director, Paul Needham. Michael Tracey, Managing Director and 50% shareholder of
the William Tracey group of companies, of which DCC acquired 50% in May 2006,
has acquired the remaining 10% of Wastecycle and will join the Company's Board.
The initial cash consideration payable by DCC is €8.7 million (Stg£5.8 million),
including net debt acquired. Further consideration will be payable up to a
maximum of €8.0 million (Stg£5.4 million) based on profits earned in each of the
three financial years to 31 March 2010. The total maximum consideration payable
is €16.7 million (Stg£11.2 million).
Founded in 1998 by Mike Shearstone and Paul Needham, Wastecycle is an innovative
recycling and waste management business, operating from a licensed recycling and
waste management site of approximately 10 acres on the outskirts of Nottingham.
Wastecycle employs 96 people, operates a fleet of 26 waste collection vehicles
and has approximately 3,000 waste containers on customers' premises. Non-hazardous
waste is received on the Company's site via a combination of the Company's own
collection vehicles and directly from a wide range of commercial, industrial and
local authority customers. The Company achieves a high level of recycling with
approximately 75% of all waste coming on site being reprocessed and the balance
being sent to third party landfills.
The forecast adjusted operating profit of the business for its financial year
ending 31 December 2006 is €2.2 million (Stg£1.5 million) on turnover of €16.7
million (Stg£11.3 million). At 30 September 2006 the book value of the business'
adjusted net assets was approximately €3.7 million (Stg£2.5 million).
Jim Flavin, Chief Executive/Deputy Chairman of DCC plc, said today:
'The acquisition of Wastecycle is a further building block in DCC's
strategy to build a significant waste recycling business in Britain.
It follows the recent purchase of 50% of the leading Scottish recycling
business, the William Tracey group of companies. As the industry
increasingly moves away from landfill, those companies with specialist
recycling expertise and facilities are poised for strong growth.'
For reference, please contact:
Jim Flavin, Chief Executive/Deputy Chairman Tel: +353 1 2799 400
Tommy Breen, Chief Operating Officer Email: investorrelations@dcc.ie
& Managing Director DCC Environmental Web: www.dcc.ie
Conor Murphy, Investor Relations Manager
This information is provided by RNS
The company news service from the London Stock Exchange
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