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ECT Recycling acquired
ECT Recycling is a leading operator in the municipal waste recycling market, focusing on waste collection and household waste recycling through long-term local government contracts. These include a long-term contract with the Somerset Waste Partnership that currently achieves the nation's lowest rate of residual waste disposal, according to official statistics produced by Defra.
The acquisition complements our existing waste business and extends our long-term relationships to a wider portfolio of local authorities.
The total consideration for the entire issued share capital of ECT Recycling is £3.4 million. In addition, May Gurney is assuming up to £6.4 million of debt and the obligations for £5.5 million of hire purchase liabilities.
The acquired order book is approximately £175 million, with available extensions worth up to an additional £350 million. For the year to 31 March 2008, based on unaudited management accounts, ECT Recycling had earnings before interest, tax and amortisation of £1.7 million (after depreciation of £2.4 million) on revenues of £46.9 million. At completion, ECT recycling had a balance sheet showing net liabilities of approximately £5.0 million.
Local government services is one of May Gurney’s core markets. This acquisition is in line with our strategic emphasis on continuing to develop and strengthen long-term relationships through providing wider services for local government customers, and follows our stated intention to expand further into the high growth local government municipal waste collection and recycling market place. The dependable and long-term income streams in this market enable us to continue to invest in improving the quality of service provided to local authority customers.
David Sterry, chief executive of May Gurney, said: “We are delighted to welcome a company whose long-term customer oriented culture and focus on partnerships is aligned to our own.
"This acquisition significantly enhances our capabilities and customer relationships in the local government waste services market - a market where the demands on our customers and challenges for our customers are growing rapidly.”
Stephen Sears, director of ECT Recycling, said: “The combined skills and resources of our businesses will enable us to play a greater role in helping our local authority customers to effectively meet their obligations in this critical and expanding area. We look forward to our future as part the May Gurney team.”
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ECT recycling website
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