DCC Regulatory News (DCC)

13 Nov 2006 07:02

DCC PLC13 November 2006 DCC Acquires Another British Waste Recycling Business 13 November 2006 DCC plc has acquired a 90% shareholding in Realpower Limited, the holdingcompany of Wastecycle Limited ("Wastecycle" or "the Company"). Wastecycle is arapidly growing, Nottingham based, recycling and non-hazardous waste managementbusiness, led by its shareholders, Chairman, Mike Shearstone and ManagingDirector, Paul Needham. Michael Tracey, Managing Director and 50% shareholder ofthe 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 amaximum of €8.0 million (Stg£5.4 million) based on profits earned in each of thethree financial years to 31 March 2010. The total maximum consideration payableis €16.7 million (Stg£11.2 million). Founded in 1998 by Mike Shearstone and Paul Needham, Wastecycle is an innovativerecycling and waste management business, operating from a licensed recycling andwaste management site of approximately 10 acres on the outskirts of Nottingham.Wastecycle employs 96 people, operates a fleet of 26 waste collection vehiclesand 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 yearending 31 December 2006 is €2.2 million (Stg£1.5 million) on turnover of €16.7million (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 400Tommy Breen, Chief Operating Officer Email: investorrelations@dcc.ie & Managing Director DCC Environmental Web: www.dcc.ieConor Murphy, Investor Relations Manager This information is provided by RNS The company news service from the London Stock Exchange