Exponent Private Equity LLP (“Exponent”) today announced that it has reached an agreement with DCC plc (“DCC”) to purchase its environmental division (“DCC Environmental” or “the Business”), an environmental waste management services group in the UK and Ireland, for £215 million, on a debt free and cash free basis.
DCC Environmental is a leading waste management, recycling and resource recovery business based in the UK and Ireland. DCC Environmental is focused on the industrial, commercial, construction and public sectors, operating in the specialist hazardous and non-hazardous sectors. Employing more than 1,000 people throughout its 21 operational facilities located in the UK and Ireland, DCC Environmental trades under the William Tracey Group, Oakwood Fuels and Wastecycle brands in the UK and Enva in Ireland. The Business is majority owned by DCC with Michael Tracey, DCC’s long-standing partner, holding a significant minority shareholding.
Under Exponent's ownership, the management team will continue to be led by Tom Walsh, Managing Director of DCC Environmental. In addition Exponent will be appointing Niall Wall as Chairman of the Business going forward. Niall will be making a significant minority investment in the transaction alongside Exponent. Michael Tracey will remain involved in the Business as a Non-Executive Director.
Niall was previously CEO of Ardagh Group for more than 10 years, a global leader in packaging solutions. Prior to joining Ardagh, he was the CEO of Sterile Technologies, a medical waste management company with operations throughout the UK and Ireland. He has considerable experience in growing businesses and has worked closely with Exponent on a number of projects.
Commenting on the acquisition, Tim Easingwood, Partner at Exponent, said: “We are delighted to be investing in DCC Environmental. The four businesses - William Tracey Group, Oakwood Fuels, Wastecycle and Enva - have each built leading positions in their respective markets, supported by excellent management teams, differentiated service offerings and strong relationships with a broad customer base. Exponent is looking forward to working with the management team to continue to capitalise on the Business’ strong reputation and market positions to unlock its full potential.”
Also commenting, Tom Walsh, Managing Director of DCC Environmental, said: “We are pleased to have the support of Exponent in what is a very exciting time for the Business, our customers and our staff.
This investment will provide the necessary capital to accelerate the development of our service offering, helping DCC Environmental achieve its long-term growth plans. I would like to thank all of the staff and management who have contributed to the success of DCC Environmental so far, and I look forward to leading the team through the next, positive phase of our journey.”
Niall Wall, incoming Chairman, said: “I am excited to be taking on the role of Chairman of the Business going forward. It is at a pivotal stage of its development, with huge potential for growth. I look forward to working closely with Tom Walsh, his team and Exponent to significantly grow the Business.”
The transaction is expected to complete in the next two months, following receipt of competition clearance from the Irish competition authority.
Exponent was advised by Houlihan Lokey EMEA, LLP, Credo, KPMG and Allen & Overy LLP on the transaction.