Last checked at 21 Jan 2010 07:00
21 January 2010
Reorganisation of DCC's British Environmental Operations
DCC plc, the business support services group, and Michael Tracey, the Managing Director of the William Tracey Group, have formed a new holding company, DCC Environmental Britain Limited, which will own DCC's British environmental operations.
Prior to the reorganisation DCC and Michael Tracey each owned 50% of the William Tracey Group and owned 90% and 10% respectively of Wastecycle Limited. In return for a consideration of Stg£8.455 million payable by DCC to Michael Tracey, both the William Tracey Group and Wastecycle will become 100% subsidiaries of DCC Environmental Britain Limited which will be owned 70% by DCC and 30% by Michael Tracey. In addition DCC and Michael Tracey will each continue to have an effective 50% interest in one former landfill site of the William Tracey Group which may have future development potential.
The William Tracey Group is Scotland's leading recycling and resource management company operating from 11 sites across the central belt of Scotland and north of England, including one of the largest material recycling facilities in Britain which covers 25 acres. Established in 1948, the William Tracey Group possesses unparalleled industry experience in Scotland and applies the latest technologies in managing both hazardous and non hazardous waste.
Wastecycle is a leading East Midlands recycling and resource management company, operating from a 15 acre site close to Nottingham city centre also applying the latest technologies to divert the highest possible proportion of waste from landfill.
The combined profit before tax of the William Tracey Group and Wastecycle for the year ended 31 March 2009 was €7.980 million (Stg£6.943 million). At 31 March 2009 the book value of their combined gross assets was €63.400 million (Stg£55.158 million) including cash of approximately €5.091 million (Stg£4.429 million).
Put and call options have been put in place over Michael Tracey's 30% shareholding in DCC Environmental Britain Limited to allow for the eventual sale of his shareholding to DCC at market value. Other than in exceptional circumstances, Michael Tracey will retain at least 22.5% of this company for a minimum of 5 years. The maximum consideration payable to Michael Tracey arising from the reorganisation, including any consideration payable under his put options, will be capped at €155.172 million (Stg£135 million).
As part of the reorganisation Michael Tracey will be appointed as Managing Director of DCC Environmental Britain Limited.
Tommy Breen, Chief Executive of DCC plc, said today:
"DCC is pleased to have agreed this reorganisation of its British environmental business with Michael Tracey, who has deep knowledge and significant experience of the environmental sector in Britain. Under Michael's leadership DCC Environmental is well placed to capitalise on the favourable market dynamic in Britain where an increasing proportion of waste is being recycled and consequently diverted away from landfill."
For reference, please contact:
Tommy Breen, Chief Executive
Fergal O'Dwyer, Chief Financial Officer
Conor Murphy, Investor Relations Manager
Telephone: +353 1 2799 400
Email: investorrelations@dcc.ie
Web: www.dcc.ie