The €10.8 million (£9.6 million) deal is for Oakwood Fuels, a British waste oil and hazardous waste collection, processing and recycling business.

The Nottinghamshire-based company sells on its collected waste to businesses which use it for road surfacing, aggregate drying and power stations.

Chief executive of DCC, Tommy Breen, says the buy will broaden DCC Environmental’s services into ‘additional complementary waste streams’ in Britain.

Breen adds: ‘It will capitalise on the trend towards more sustainable waste management and in particular increased waste recovery and recycling.’

Under the terms of the deal the initial consideration of €10.8 million could rise to €22.5 million based on Oakwood’s profits in each of the three financial years to 31 March 2014.

The purchase is the third for DCC in 2011 following its February acquisition of Pace Fuelcare and March buy of electronic office supplies business Advent Data.

Oakwood Fuels reported profits for the year ended 30 September 2010 of €2.5 million on revenue of €10.5 million.

Breen concludes: ‘The acquisition will also enable DCC Environmental’s existing British businesses to offer new services to their customers and the enlarged business to leverage an expanded customer list.’