Industrial holding group DCC said today its subsidiary, DCC Environmental Britain, has acquired Oakwood Fuels for as much as €33.3 million.

DCC is to pay an initial €10.8 million for the company with a further €22.5 million payable based on Oakwood's profits in the three-years to the end of March 2014.

Nottinghamshire-based Oakwood, which currently employs 105 people, collects lubricant oil and hazardous waste and converts it into processed oil which is then sold for use in a variety of applications.

The firm's adjusted operating profit for its financial year ended September 30th 2010 was €2.5 million on revenues of €10.5 million. The book value of its adjusted net operating assets was €1.9 million.

Commenting on the acquisition, DCC's chief executive Tommy Breen said the deal would broaded DCC's Environmental service offering and allow it to capitalise on the trend towards more sustainable waste management.

DCC Environmental is a provider of recycling and waste management services in Ireland and Britain. In its financial year ended March 31st, the company generated revenues of €106 million and operating profits of €11.6 million.

The company operates six licensed sites in Ireland and fourteen in Britain.