Irish firm sets sights on British recycling market

Non-hazardous waste specialist Wastecycle was founded in 1998 by Mike Sheerstone and Paul Needham, and employs 96 people in a 10-acre site outside Nottingham.

” The acquisition of Wastecycle is a further building block in DCC's strategy to build a significant waste recycling business in Britain. “
– Jim Flavin, DCC plc
The company has a fleet of 26 collection vehicles and manages about 3,000 waste containers on commercial customers' premises as well as taking in waste directly from industry, commerce and local authorities.

DCC's acquisition of a 90% stake in Realpower Ltd, the holding company of Wastecycle Ltd, was made for an initial 5.8 million including net debt taken on.

A further payment of up to 5.4m could also be made depending on profits earned up to 2010.

Forecasts for the year ending December 31, 2006, are for Wastecycle to make a 1.5 million operating profit based on an 11.3 million turnover. Up to the end of September, the company had around 2.5 million in assets.

The company says it recycle 75% of the waste taken in at its licensed site, with the remainder going to third-party landfills.

Tracey
DCC, which has its head office in Dublin and is listed on both the Irish and London stock exchange, acquired a 50% stake in the Renfrewshire waste and recycling firm William Tracey Group in May this year. The group includes William Tracey Ltd, Tracey Timber Recycling Ltd and Allglass Reprocessors (UK) Ltd.

The other 10% stake of Wastecycle has been acquired by Michael Tracey, managing director and owner of the remaining 50% stake of William Tracey Group.

Strategy
Jim Flavin, chief executive and deputy chairman of DCC, said yesterday: “The acquisition of Wastecycle is a further building block in DCC's strategy to build a significant waste recycling business in Britain.

“As the industry increasingly moves away from landfill, those companies with specialist recycling expertise and facilities are poised for strong growth,” Mr Flavin added.

DCC's strategy comes within a wave of Irish interest in the British waste and recycling market. Another Irish firm, Greenstar, also revealed its ambitions this year to build up a presence in this country (see letsrecycle.com story).