National Toll Roads (NTR) has taken a controlling interest in Celtic Utilities, a leading operator in the environmental infrastructure sector, in a deal which values Celtic at #62 million (£48.8 million).

An offer by NTR to buy the 76.9 per cent stake in Celtic Utilities held by entrepreneur Mr John Gallagher was accepted by the company yesterday.

The offer comprises 943,767 ordinary shares in NTR, a convertible/redeemable loan note with a par value of #38.4 million and #1.1 million in cash.

ICC Equity Partners will retain the balance of the equity in the company.

The offer is subject to the approval of shareholders of NTR plc and will be put to an extraordinary general meeting in August.

On completion of the deal, Mr Gallagher, who is chairman of Celtic Utilities, will join the board of NTR as a non-executive director and will continue to play a role in the development of Celtic Utilities.

Mr Jim Barry, NTR chief executive, said the acquisition of the stake in Celtic Utilities was a significant step forward in the company's transformation into a broad-based developer and operator of infrastructure in Ireland.

Since it was set up in 1978, NTR has developed from road infrastructure and toll operations into waste management and energy generation with Eirtricity, a joint venture with Future Wind Partners, which operates in the renewable energy sector.

Celtic Utilities, which was founded three years ago by Mr Gallagher, is a joint venture partner with NTR in Celtic Waste, which offers waste management services.

It also owns 50 per cent of Celtic Anglian Water, a joint venture with UK company AWG, which operates and develops water and water infrastructure.

"This is a very significant deal, culminating a two-year transformation period for the company," said Mr Barry. "On completing this transaction, NTR will hold leading positions in the roads, waste management, energy and water/wastewater sectors in Ireland."

He added: "The price level is high, but you've got to measure it against the value of Celtic and the significant potential of the business."