DCC disposes environmental division to private equity firm
Decision believed to give group cash proceeds of £170m
Tommy Breen said the disposal will “allow DCC to concentrate fully on growing and developing the energy, healthcare and technology divisions”. Photograph: Dave Meehan/The Irish Times
Energy and technology group DCC has completed the disposal of its environmental division.
The company first announced the agreement to dispose of the division to Exponent, a private equity firm, in April.
The company said on the original stock exchange announcement that the enterprise value for the transaction was £219 million (€250 million) on a debt-free, cash-free basis.
DCC’s environmental division comprised a number of its British businesses. On the basis that the group’s minority partner owns 25 per cent of those businesses, DCC said it expects to receive cash proceeds of roughly £170 million (€195 million).
The company statement at the time of the original announcement said that they expected to give rise to an exceptional profit in the year to the end of March 2018 of roughly £30 million. The disposal will “allow DCC to concentrate fully on growing and developing the energy, healthcare and technology divisions”, according to Tommy Breen, chief executive of DCC.