Tycoon Murray sells off Eden Recycling to Shanks Group

Published on Wednesday 12 April 2006 11:50

EDINBURGH-BASED business tycoon David Murray has offloaded the assets of Eden Recycling to waste management firm Shanks Group for an undisclosed sum.

The deal includes Eden's recycling facility in the Capital. In a statement, Shanks added that the acquisition of Eden's Glasgow assets would complement the group's recent 1 million investment in its materials recycling operation at Blochairn.

Last December, Mr Murray sold his Newbridge-based Murray International Metals (MIM) unit for 112m, after describing it as "a mature business with limited growth potential".

The sale of the once-flagship aspect of the Rangers chairman's business empire to United States-based private equity firm Jefferies Capital Partners followed an "unsolicited approach and offer".

Commenting on the takeover of Eden, Shanks Waste Management's managing director Ian Goodfellow said: "This purchase enhances our other recent acquisition in Scotland and continues to increase our market share, whilst delivering upon our strategy of landfill diversion."

Towards the end of last year, Shanks acquired Cleanaway's commercial and industrial business in the central belt.

In its most recent full financial year, Eden's annual pre-tax losses almost quadrupled to 1.52m, despite turnover rising to just under 940,000.

The accounts, covering the 12 months to January 31, 2005, also showed that Eden employed an average of 27 people during the year. Other operating charges more than trebled to 1.7m from 498,521 the year before.

At the time of the MIM sale, Mr Murray stressed that the transaction was not a precursor for a piecemeal sell-off. He said his aim was to build a 1 billion turnover business by 2010.