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 £219 million, on a debt-free, cash-free basis.
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 £153.5 million and operating profit of £15.2 million. It generated return on capital employed of 11.7%. DCC Environmental represented approximately 5% of the DCC Group’s operating profit in the year ended 31 March 2016.
The transaction is expected to give rise to an exceptional profit in the year ending 31 March 2018 of approximately £30 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 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.”