Business support services group DCC has announced a re-organisation of its environmental operations in Britain.
DCC and Michael Tracey, managing director of the William Tracey Group, have formed a new holding company, DCC Environmental Britain Limited, which will own DCC's British environmental businesses.
Prior to the reorganisation DCC and Michael Tracey each owned 50 per cent of the William Tracey Group and owned 90 per cent and 10 per cent respectively of Wastecycle Limited.
In return for a consideration of £8.455 million payable by DCC to Michael Tracey, both the William Tracey Group and Wastecycle will become 100 per cent subsidiaries of DCC Environmental Britain Limited which will be owned 70 per cent by DCC and 30 per cent by Michael Tracey.
In addition DCC and Michael Tracey will each continue to have an effective 50 per cent interest in one former landfill site of the William Tracey Group which may have future development potential.
The William Tracey Group is a recycling and resource management company operating from 11 sites across the central belt of Scotland and north of England.
Put and call options have been put in place over Michael Tracey's 30 per cent shareholding in DCC Environmental Britain Limited to allow for the eventual sale of his shareholding to DCC at market value.