Onyx buys MS stake
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• French-owned Onyx UK has bought a majority stake in UK Waste Control's holding company United Environmental Systems. UKWC chairman Barry Trowbridge dismisses any suggestion that the deal has rescued the company from cash flow problems.
Onyx, part of the CGEA group, will run UKWC although some former shareholders, including Trowbridge, will retain a reduced interest in the company. Trowbridge says he will remain with the company "to expand and build up business. Everybody's staying although they may have different functions in the new company." UKWC employs 650.
Trowbridge says that the company has no cash flow problems, and stresses it has not had trouble paying its bills.
He says that UKWC would not be in the process of buying three contracts from Leigh Environmental if that was not so.
The purchase of the contracts, worth a total of 21.5m a year, was originally supposed to be completed in August. Onyx's commercial and project director John Basford says only "subtle changes" will be made at UKWC. He stresses that none of the company's 15 depots will be closed and says no redundancies are planned.
UKWC's 300-strong fleet, most of which is leased, will now carry the Onyx livery.
The CGEA group, whose environmental division trades as Onyx, is one of Europe's biggest waste management companies. It runs 3,500 vehi cies with 12,500 employees in France, Belgium, Spain, Germany, Portugal, Columbia and the UK. The group's operating revenue in 1989 was 2276m, with net profits of £6.4m.
Onyx and UKWC have recently signed municipal contracts starting in January. Onyx has won a five-year contract worth 21.3m a year with Elmbridge Council in Surrey. UKWC's street-cleansing contract with Portsmouth City Council is worth 21.8m a year.