ECT Recycling sold to May Gurney

ECT Recycling is the largest community sector operator in the municipal waste recycling market, focusing on waste collection and household waste recycling through long-term local government contracts.

The acquisition complements May Gurney's existing waste business and extends the company's reach to a wider portfolio of local authorities.

Share capital

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.  

A statement from May Gurney said: “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 the company's strategic emphasis on continuing to develop and strengthen long-term relationships through providing wider services for its local government customers and follows its 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 May Gurney to continue to invest in improving the quality of service provided to its local authority customers.

Culture

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.”