DCC PLC
28 September 2001
28 September 2001
DCC Expands in Environmental Services
DCC plc, the leading value added marketing and distribution company, has been
developing a growing environmental services business within its Energy
division. To date this development has been principally in the oil treatment
sector in Ireland. Services include the collection and recycling of used
lubricating oils and oil filters, the biological treatment of contaminated
soil, and the provision of a twenty four hour emergency response service to
the oil industry.
DCC has now entered into the rapidly growing water treatment sector through
the acquisition of a 70% shareholding in Environmental Technology
Manufacturing Limited trading as 'Envirotech' for a maximum consideration of
EUR6.2 million. Put and call options have been put in place to acquire the
remaining 30% of the share capital of Envirotech in three equal tranches of
10% based on the profits after tax for each of the years ended 31 March 2003,
2004 and 2005.
Envirotech, which is based in Cork in Ireland, is a value added marketing and
distribution company which develops, blends and markets under its own brand a
range of chemicals which are used to treat water in effluent treatment plants.
Standards are set by local authorities and the Environmental Protection
Agency as to the quality of water which can be discharged to sewers, to rivers
or to the sea. Envirotech develops and markets chemicals which enable its
customers, which are principally in the pharmaceutical, food, chemical and
municipal sectors, to meet these standards. Envirotech's business which is
primarily in Ireland is now expanding into Britain.
Following the completion of the acquisition of Envirotech, DCC's environmental
services business operates from two facilities in the Republic of Ireland and
one in Northern Ireland, employs 83 people and is expected to generate
operating profits of EUR3 million in a full year.
Jim Flavin, Founder and Chief Executive of DCC, said today:
'Environmental services is a business sector experiencing rapid growth, driven
by increased regulation and public awareness, which offers exciting
opportunities for development. Over the last couple of years DCC has
broadened the range of environmental services and products it provides to the
oil treatment sector. The acquisition of Envirotech expands DCC's activities
into the larger water treatment sector. We intend to develop a more
significant environmental services business over time in both Ireland and
Britain'.
For reference:
Kevin Murray, Managing Director - DCC Energy
Telephone: +353 1 2799 400
Email: kmurray@dcc.ie
For further information on DCC - www.dcc.ie
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