15th May 2006 07:02
DCC PLC15 May 2006 DCC ACQUIRES 50% SHAREHOLDING IN SCOTLAND'S LEADING RECYCLING AND WASTE MANAGEMENT BUSINESS DCC plc, the business support services group, has acquired a 50% shareholding in the William Tracey group of companies ("William Tracey" or "the Group"), aScottish based recycling and waste management business, for a consideration,net of share of cash acquired, of €23.9 million (Stg£16.3 million), which wassatisfied in cash. Founded in 1948, William Tracey is Scotland's leading recycling and wastemanagement business, with a reputation for innovation and creativity in themanagement of waste and recycling. The Group has been owned by its ManagingDirector, Michael Tracey, a son of the founder, from whom DCC has acquired its50% shareholding. The Group's head office is in Linwood near Glasgow and itemploys 255 people. William Tracey operates from six freehold sites in Scotland and carries out abroad range of activities including materials recycling, hazardous wastetreatment, landfill and renewable energy generation from landfill gas. TheGroup's extensive fleet of specialist waste management vehicles collects wastefrom industrial and commercial customers for processing. The Group alsoprocesses waste on behalf of local authorities and other third parties. The adjusted operating profit of the William Tracey Group for its financialyear ended 30 April 2006 was approximately €7.3 million (Stg£5.0 million) onsales of approximately €42.5 million (Stg£29.0 million). At 30 April 2006 thebook value of the Group's net assets was approximately €16.9 million (Stg£11.5million) including net cash of approximately €7.3 million (Stg£5.0 million). Michael Tracey and his management team have deep knowledge and experience of thewaste management and recycling business. William Tracey's innovative approach torecycling, creating valuable end products from a range of waste streams,positions it at the forefront of the industry's move away from landfill. MichaelTracey is a Director of the Environmental Services Association in Britain andwas until recently Chairman of the Scottish Environmental Services Associationand he will join the Board of DCC Environmental Limited. Jim Flavin, Chief Executive/Deputy Chairman of DCC plc, said today: "DCC has been keen to expand its environmental services business into Britain and also into the non-hazardous waste sector. The acquisition of a 50% shareholding in the William Tracey Group achieves both of these objectives and also increases the scale and technical expertise of DCC Environmental. DCC looks forward to working in partnership with Michael Tracey in the further expansion of the William Tracey Group and of DCC Environmental. " For reference:Jim Flavin, Chief Executive/Deputy ChairmanTommy Breen, Managing Director, DCC Energy and DCC EnvironmentalThomas Davy, Finance and Development Director, DCC EnvironmentalConor Murphy, Investor Relations Manager Telephone: +353 1 2799400Email: [email protected]: www.dcc.ie This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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