DCC Environmental expands its presence in Britain
DCC Environmental expands its presence in Britain
DCC plc, the sales, marketing, distribution and business support services group, announces that its 70% subsidiary, DCC Environmental Britain Limited, has acquired the entire issued share capital of Oakwood Fuels Limited ("Oakwood"), a British waste oil and hazardous waste collection, processing and recycling business.
Oakwood collects waste lubricant oil and hazardous waste from businesses in a variety of sectors (the largest of which is the automotive services sector) and converts the waste oil to processed fuel oil (PFO). The PFO is then sold to customers for use in a variety of applications including road surfacing operations, aggregate drying, industrial and agricultural drying, power stations, large boilers and furnaces. Based in Nottinghamshire, Oakwood employs 105 people.
Oakwood's adjusted operating profit for its financial year ended 30 September 2010 was €2.5 million (Stg£2.2 million) on revenue of €10.5 million (Stg£9.3 million) while the book value of its adjusted net operating assets at 30 September 2010 was €1.9 million (Stg£1.7 million).
The initial consideration paid in cash by DCC is €10.8 million (Stg£9.6 million) on a debt free cash free basis. Further cash consideration will be payable based on Oakwood's profits in each of the three financial years to 31 March 2014. The maximum additional consideration payable is €22.5 million (Stg£20 million).
Tommy Breen, Chief Executive of DCC plc, said today:
"The acquisition of Oakwood will broaden DCC Environmental's service offering into additional complementary waste streams in Britain and capitalise on the trend towards more sustainable waste management and in particular increased waste recovery and recycling.
The acquisition will also enable DCC Environmental's existing British businesses to offer new services to their customers and the enlarged business to leverage an expanded customer list."
For Reference:
Tommy Breen, Chief Executive, DCC plc
Redmond McEvoy, Investor Relations Manager
Telephone: +353 1 2799400
Email: investorrelations@dcc.ie
Web: www.dcc.ie
About DCC plc
DCC plc is a sales, marketing, distribution and business support services group headquartered in Dublin with operations in Britain, continental Europe and Ireland. DCC has five divisions - DCC Energy, DCC SerCom, DCC Healthcare, DCC Environmental and DCC Food & Beverage. In its financial year ended 31 March 2011, DCC generated revenues of €8.7 billion and operating profits of €230 million. The Group currently employs approximately 8,000 people. DCC's shares are listed on both the Irish and London stock exchanges under Business Support Services.
About DCC Environmental
DCC Environmental is a leading provider of recycling and waste management services to the industrial, commercial, construction and public sectors, operating in both the non-hazardous and hazardous segments of the market in Britain and Ireland. In its financial year ended 31 March 2011, DCC Environmental generated revenues of €106 million and operating profits of €11.6 million.
Britain - Operating from fourteen sites in Scotland and the North East and East Midlands regions of England, DCC Environmental Britain Limited collects and processes a broad range of non-hazardous and hazardous waste. The business handles 1.2 million tonnes of material annually, a substantial portion of which is collected by its fleet of 223 vehicles. Approximately 70% of all waste volumes are diverted from landfill. DCC Environmental Britain Limited is 70% owned by DCC and 30% by its Managing Director, Michael Tracey.
Ireland - DCC Environmental provides solutions for the treatment and disposal of a diverse range of hazardous wastes. Operating from six licensed sites, DCC Environmental has the most comprehensive hazardous waste infrastructure in Ireland, providing a range of services including waste oil collection and recycling, chemical treatment, water treatment, metal recovery and soil remediation.
This information is provided by RNS
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