Scottish waste deal costs €23.9m

DCC has spent €23.9 million on the purchase of a 50 per cent share in Scottish waste and recycling company, William Tracey.

The acquisition adds significant scale to the firm's developing environmental division and marks a notable expansion into Britain.

William Tracey, founded in 1948, is among Scotland's largest recycling and waste management operations. It operates from six freehold sites in Scotland and is involved in a range of businesses, including treatment of hazardous waste, landfill and renewable energy generation.

The firm had an adjusted operating profit of about €7.3 million in the year to the end of April, with sales standing at €42.5 million. The book value of the company's assets at the same date was €16.9 million, including net cash of €7.3 million.

Jim Flavin, chief executive and deputy chairman of DCC, said the firm had been keen to expand into Britain and also into the non-hazardous waste sector.

He said DCC would continue to look for deals in the sector in line with its overall growth strategy. "We will be examining these opportunities in Ireland as well," he said. Analysts welcomed the Scottish purchase, deeming the price attractive.

The remaining 50 per cent of William Tracey continues to be owned by its managing director, Michael Tracey, a son of the company's founder. Mr Tracey will join the board of DCC's environmental division.