The current growth in UK recycling was cited as one major factor for attracting the private equity group ABN AMRO to put a 22.6 million investment into the sale from the Bridgepoint group. The Royal Bank of Scotland also provided 32.5 million in capital for the sale.
The sale of the company comes just five years after the Bridgepoint group bought Dennis Eagle for 31 million. Once all costs and working capital is taken into account, this month's acquisition could be worth up to 61.5 million.
Warwick-based Dennis Eagle has a 40% share of the 200 million UK market for refuse collection vehicles. With a turnover of 90 million a year, the company employs 580 staff at its Warwick and Blackpool factories.
Supplying both vehicle chassis and bodies, the company manufactures about 600 vehicles each year and also runs a parts and after-sales service.
Jointly-owned by the management and ABN AMRO, the company will continue to be run by chief executive Mike Molesworth, finance director Robert Jackson and commercial director Norman Thoday.
Mr Molesworth said: “We have a clear plan to develop the business into a leading international business over the next three years. ABN Amro Capital share our vision and we look forward to working together to achieve these goals.”
Growth
Growth in the UK market for RCVs is set to continue at the 6% rate seen since 1997, the company said, because of the 2-3% growth in municipal waste generated in the UK and the government's increase in funding for council recycling.
Ian Taylor, chief executive of ABN AMRO Capital, said: “We believe that Dennis Eagle is well placed to take advantage of increasing spend in its home market, but also to grow and to build on its success in European and other international markets.”
Company expansion is also set to continue by exploiting foreign markets, expanding Dennis Eagle's presence in Ireland, France, Germany and Switzerland. Currently, 12% of the company's turnover is from exports.
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