Support and construction services group May Gurney has acquired ECT Recycling for £3.4 million.
ECT Recycling is part of the ECT Group, which claims to be one of the UKs largest community sector operators. ECT Recycling focuses on the collection and recycling of municipal household waste through long term contracts with local authorities.
These include a deal with the Somerset Waste Partnership, which provides waste and recycling services on behalf of all local authorities in Somerset and the London borough of Ealing.
Local government services is one of May Gurneys core businesses, ranging from highways maintenance to street lighting. With the acquisition it hopes to extend its existing waste business and the companys long-term relationships to a wider portfolio of local authorities. May Gurney will take on £6.4m of debt and a further £5.5m of obligations for hire purchase liabilities.
May Gurneys finance director, Michael Dunn, said the deal would transform the groups municipal waste business and would help strengthen its ties with local government customers.
ECT Recycling director Stephen Sears said: The combined skills and resources of our businesses will enable us to play a greater role in helping our local authority customers to effectively meet their obligations in this critical and expanding area.
The Somerset Waste Partnership has reacted positively to the buy out. ECT Recycling has held the contract to collect Somersets recyclables and refuse since October 2007, and has been working with some of the councils on recycling since 2004.
Managing director Steve Read said: The deal provides long term financial security for ECT Recycling without affecting the way the service is delivered, future plans or costs to the community.
We are also assured that May Gurney wish to propagate the trust we have built up in our relationship with ECT Recycling. This appears to be good news for Somerset.
Logo: May Gurney