Hazardous waste specialist DCC Environmental is expanding in the UK with the purchase of Oakwood Fuels, a specialist in waste oil and hazardous waste collection, processing and recycling, for €10.8m (£9.6m).
Oakwood converts waste lubricant oil at its Nottinghamshire site into processed fuel oil, which is used in a variety of applications such as aggregate drying, industrial and agricultural drying, power stations, large boilers and furnaces.
DCC chief executive Tommy Breen said: “The acquisition of Oakwood will broaden our services into additional complementary waste streams in Britain, and capitalise on the trend towards more sustainable waste management and in particular increased waste recovery and recycling.
“The acquisition will also enable DCC’s existing British businesses to offer new services to their customers and the enlarged business to leverage an expanded customer list.”
DCC bought the entire issued share capital of Oakwood on a debt-free, cash-free basis. A further cash consideration will be payable based on Oakwood’s profits in each of the three financial years to 31 March 2014. The maximum additional consideration payable is €22.5m.
Oakwood’s adjusted operating profit for its financial year ended 30 September 2010 was €2.5m on revenue of €10.5m. DCC Environmental is a division of the DCC Group based in Dublin. At the close of this financial year, DCC had generated revenues of €8.7bn and an operating profit of €230m.