Dustcart Firm Sold for Pounds 51m to ABN
Byline: James O'Brien
Dennis Eagle, the designer and manufacturer of refuse collection vehicles, has been acquired by ABN Amro Capital for pounds 51 million.
The Warwick company, which has 580 employees, is the only supplier of both chassis and bodies and ABN believes it can take the company forward and improve its present 12 per cent export figure over the next five years.
Costs of the acquisition, announced yesterday, from rival group Bridgepoint, will rise to pounds 61.5 million when transaction and working capital facilities are taken into account.
Five managers who had a total ten per cent stake in the operation have reinvested their funds in the new business for a 20 per cent holding.
The business, based on the Heathcote Industrial Estate, will be jointly owned by the management and through funds managed by ABN Amro Capital.
The market in the UK for refuse collection vehicles is estimated to have a sales value of pounds 200 million. The present turnover of the company is pounds 90 million and it manufactures about 600 complete vehicles annually.
Since 1997 the market has grown at a rate of about six per cent per annum due to the underlying growth in domestic waste volumes of about three per cent annually and Governmentsponsored initiatives to change waste disposal methods and make greater use of recycling.
Dennis Eagle has a leading position in its market with a share of about 40 per cent.
The company has a distribution subsidiary in France and towards the end of last year Dennis Eagle also broke into the Swiss market for the first time where it sold two refuse vehicles. …