A Channel Islands-based firm is the chief beneficiary of the sale of a majority shareholding in Cork-based chemicals company Environmental Technology Manufacturing to marketing and distribution company DCC.

DCC has acquired a 70 per cent stake in Environmental Technology Manufacturing for €6.2 million (£4.88 million).

Seventy-two per cent of the issued share capital of the Cork company is owned by Mountain Shadow Properties which is based in Jersey. Company director and secretary Mr John O'Regan holds an 18 per cent stake and a second company director, Ms Helen O'Regan, holds 10 per cent.

DCC has put in place put-and-call options to acquire the remaining 30 per cent of the share capital of Environmental Technology Manufacturing in three equal 10 per cent tranches. These will be based on the profits after tax for each of the years ended March 31st 2003, 2004 and 2005.

DCC has been developing a growing environmental services business within its energy division, the company said. To date, this development has been principally in the oil treatment sector in Ireland, such as the collection and recycling of used lubricating oils and oil filters, and the biological treatment of contaminated soil.

The acquisition of Environmental Technology Manufacturing expanded DCC's activities in the larger water treatment sector, said chief executive, Mr Jim Flavin.

"We intend to develop a more significant environmental services business over time in both Ireland and Britain," he added.

In a separate development, DCC announced that it had purchased 2,275,000 of its own shares, representing 2.66 per cent of its issued share capital, at a cost of €21.04 million.

Yesterday's purchase of shares, when combined with the 2,563,045 shares bought in July 2000, brings the total number of shares bought back to 4,838,045, or 5.48 per cent of its total issued share capital.