DCC PLC Disposal of DCC's Environmental division (6808B)
April 05 2017 - 7:18AM
UK Regulatory
TIDMDCC
RNS Number : 6808B
DCC PLC
05 April 2017
5 April 2017
DCC announces disposal of its Environmental division
DCC plc, the leading international sales, marketing and business
support services group, has agreed to dispose of its Environmental
division to Exponent, a leading private equity firm. The enterprise
value for the transaction is GBP219 million, on a debt-free,
cash-free basis. The Environmental division comprises the British
businesses, William Tracey Group, Oakwood Fuels and Wastecycle and
its Irish business, Enva.
The transaction is expected to complete in the quarter to 30
June 2017, following receipt of competition clearance from the
Irish competition authority.
DCC Environmental is active in the treatment and recycling of
non-hazardous and hazardous waste in Britain and Ireland. In the
year ended 31 March 2016, DCC Environmental reported revenue of
GBP153.5 million and operating profit of GBP15.2 million, whilst
generating a return on capital employed of 11.7%1. DCC
Environmental represented approximately 5% of the DCC Group's
operating profit in the year ended 31 March 2016.
DCC expects to receive cash proceeds on completion of
approximately GBP170 million (25% of the British businesses are
owned by DCC's long-standing minority partner). The proceeds will
be used to fund the continued development of DCC's Energy,
Healthcare and Technology divisions. The transaction is expected to
give rise to an exceptional profit in the year ending 31 March 2018
of approximately GBP30 million.
Tommy Breen, Chief Executive of DCC plc, said today:
"We are pleased to announce the profitable sale of the
Environmental division. The business has performed strongly in
recent years and we expect it to continue to grow and develop under
the ownership of Exponent. I would like to thank all of the
dedicated employees of DCC Environmental who have contributed to
the success of the division under DCC's ownership.
The disposal of the Environmental division brings sharpened
strategic focus to the Group and will allow DCC to concentrate
fully on growing and developing the Energy, Healthcare and
Technology divisions where DCC has been actively deploying
development capital in recent years."
Canaccord Genuity is acting as financial adviser to DCC in
relation to this transaction.
For reference:
Tommy Breen, Chief Executive
Fergal O'Dwyer, Chief Financial Officer
Kevin Lucey, Head of Group Finance & Investor Relations
Telephone: +353 1 2799 400
Email: investorrelations@dcc.ie
Web: www.dcc.ie
Canaccord Genuity
Chris Robinson / Alastair Rogers
Telephone: +44 20 7523 8000
Powerscourt (Media)
Lisa Kavanagh / Victoria Palmer-Moore
Telephone: +44 20 7250 1446
Email: DCC@powerscourtgroup.com
About DCC plc
DCC plc is an international sales, marketing and business
support services group headquartered in Dublin with operations in
Britain, Continental Europe and Ireland. DCC has four divisions -
DCC Energy, DCC Healthcare, DCC Technology and DCC Environmental.
In the financial year ended 31 March 2016, DCC generated revenue of
GBP10.6 billion and operating profit of GBP300 million and
currently employs approximately 11,000 people in 15 countries.
DCC's shares are listed on the London Stock Exchange and are
included in the FTSE All-Share Index and the FTSE 100 Index.
1 The gross assets of the Environmental division at 30 September 2016 were GBP134 million.
This information is provided by RNS
The company news service from the London Stock Exchange
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