May Gurney pays £3m for ECT Recycling

May Gurney has acquired ECT Recycling in a £3m deal.

The acquisition complements May Gurney’s existing waste business and extends the company’s long-term relationships to a wider portfolio of local authorities.

In addition May Gurney is taking on ECT’s £6.4m of debt and the obligations for £5.5m of hire purchase liabilities.

The acquired order book runs to £175m with available extensions worth up to an additional £350m.

Financial results, covering the year to 31 March 2008, and based on un-audited management accounts, show profit before interest, tax and amortisation (EBITA) of £1.7 million on a £47m turnover.

ECT has net liabilities of £5.0m.

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.”

Stephen Sears, Director of ECT Recycling, said: “We look forward to our future as part the May Gurney team.”

The seller was the ECT Group CIC.