LESSONS FROM A MIDDLE MARKET LBO: THE CASE OF O.M. SCOTT

In 1986 The O.M. Scott & Sons Company, the largest producer of lawn care products in the U.S., was sold by the ITT Corporation in a divisional leveraged buyout. The company was founded in Marysville, Ohio in 1870 by Orlando McLean Scott to sell farm crop seed. In 1900, the company began to sell weedfree lawn seed through the mail. In the 1920s, the company introduced the first home lawn fertilizer, the first lawn spreader, and the first patented bluegrass seed. Today, Scott is the acknowledged leader in the “do-it-yourself” lawn care market, with sales of over $300 million and over 1500 employees. Scott remained closely held until 1971, when it was purchased by ITT. The company then became a part of the consumer products division of the huge conglomerate, and operated as a wholly-owned subsidiary for 14 years. In 1984, prompted by a decline in financial performance and rumors of takeover and liquidation, ITT began a series of divestitures. Over the next two years, total divestitures exceeded $2 billion and, after years of substandard performance, ITT's stock price significantly outperformed the market. On November 26, 1986, in the midst of this divestiture activity, ITT announced that the managers of Scott, along with Clayton & Dubilier (C & D), a private firm specializing in leveraged buyouts, had agreed to purchase the stock of Scott and another ITT subsidiary, the W. Atlee Burpee Company. The deal closed on December 30. Clayton & Dubilier raised roughly $211 million to finance the purchase of the two companies. Of that $211 million, almost $191 milion, or 91% of the total, was debt: bank loans, subordinated notes, and subordinated debentures. The $20 million of new equity was distributed as follows: roughly 62% of the shares were held by a C & D partnership, 21% by Scott's new subordinated debtholders, and 17.5% by Scott management and employees. After this radical change in financial structure and concentration of equity ownership, Scott's operating performance improved dramatically. Between the end of December 1986 and the end of September 1988, sales were up 25% and earnings before interest and taxes (EBIT) increased by 56%. As shown in Table 1, this increase in operating earnings was not achieved by cutting back on marketing and distribution or R & D. In fact, spending on marketing and distribution increased by 21% and R & D spending went up by 7%. Capital spending also increased by 23%.     

Information technology developments and implications for national policies

A review is made of the global status of information technology (IT) development and new opportunities identified for government IT policies. Despite operational problems, IT innovations continue apace. Poor human-computer interaction, user friendliness and lack of standardization are all key issues which must be addressed. Globalization trends, east-west politicomilitary changes and third world development, all have implications for government IT policies over the coming decade—and the right directions must be pursued now to derive real benefits from IT and move towards a true information economy.     

Anaerobic co-digestion of sludge with other organic wastes in small wastewater treatment plants: an economic considerations evaluation.

This paper deals with an economic comparison between costs and incomes in small wastewater treatment plants where the anaerobic co-digestion process of sludge and biowaste with energy recovery is operated. Plants in the size range 1,000-30,000 persons equivalent (pe) were considered in the study: typical costs, comprehensive of capital and operating costs, were in the range euro69-105 per person per year depending on the plant size: the smaller the size the higher the specific cost. The incomes deriving from taxes and fees for wastewater treatment are generally in the range euro36-54 per person per year and can only partially cover costs in small wastewater treatment plants. However, the co-treatment of biowaste and the use of produced energy for extra credits (green certificates) determine a clear improvement in the possible revenues from the plant. These were calculated to be euro23-25 per person per year; as a consequence the costs and incomes can be considered comparable for wastewater treatment plants (WWTPs) with size larger than 10,000 pe. Therefore, anaerobic co-digestion of biowaste and sludge can also be considered a sustainable solution for small wastewater treatment plants in rural areas where several different kinds of biowaste are available to enhance biogas production in anaerobic reactors.     

Benefits to 0+ fishes of connecting man‐made waterbodies to the lower River Trent,England

Floodplain waterbodies are reputed to enhance recruitment of riverine fish populations via provision of spawning and nursery habitat, refuge from floods, and increased availability of planktonic food resources compared with main river channels. Notwithstanding, there have been few parallel studies of fishes and their food resources at both main river and floodplain sites. Thus, this study investigated the 0+ fishes, zooplankton and phytoplankton (chlorophyll a) at four main river and four (man‐made) floodplain sites on the lower River Trent, England, between May 1999 and October 2004 inclusive. All sites shared the same key fish species, and there were no consistent differences in the densities, growth or condition of 0+ fishes from main river and floodplain sites. Similarly, all sites shared the same key zooplankton taxa. However, zooplankton densities, notably of large‐bodied cladocerans, and chlorophyll a concentrations, were significantly higher at floodplain sites than at main river sites. Thus, connection of man‐made waterbodies has the potential to enhance recruitment of riverine fish populations via provision of important spawning and nursery habitat, and superior feeding opportunities for 0+ fishes compared with main river channels. Copyright © 2007 John Wiley & Sons, Ltd.     

Biocides used in building materials and their leaching behavior to sewer systems.

There is increasing concern about diffuse pollution of aquatic systems by biocides used in urban areas. We investigated sources and pathways of biocides significant for the pollution of storm water runoff. Main sources seem to be building envelopes, i.e. facades (paints, plasters) and roof sealing membranes. First results from a defined urban catchment drained by a separated sewer system without any agricultural activities reveal a substantial occurrence. Even after the first flush, concentrations of terbutryn, carbendazim, mecoprop as well as Irgarol 1051 and its metabolite exceeded the Swiss water quality standard of 0.1 microg/L. In laboratory experiments, leaching of mecoprop used as a root protection agent in bitumen sheets for roof waterproofing was determined. The concentrations differed in 16 different sheets two orders of magnitude, depending on the product composition. Using optimized products, it is expected to be the most efficient and sustainable way to reduce the environmental impact. To understand transport dynamics and environmental risk, further storm water events will be analyzed. Based on the ongoing project URBIC, first measures will be proposed to limit the release to surface and ground water.     

A new design of flocculation tank: the Turbomix applied to weighted flocculation.

As far as flocculation is concerned, the agglomeration of suspended particles into flocs is highly linked to the hydraulic behaviour of the agitation. The Turbomix is a special design of mixing tank; its design was developed to better control the flow during the flocculation stage. It enables a significant decrease in footprint of the process. The combination of the Turbomix and ballasted flocculation has been studied during pilot trials in terms of treatment efficiency. Its controlled hydraulic behaviour explains the efficiency of the process as proved by CFD investigation.     

Oxidation and mineralisation of substituted phenols by Fenton's reagent and catalytic wet oxidation.

Catalytic abatement of solutions of 1,000 mg/L in phenol, ortho and para nitrophenol and ortho and para cresols was acomplished by using two catalytic systems. Fenton's reagent was used at 50 degrees C by adding 10 mg/L of ferrous cation and different dosages of H2O2. The mixture was reacting isothermically in a batch way during 3 hours. Catalytic wet oxidation (CWO) was carried out by using a commercial Activated Carbon, Industrial React FE01606A, CWO runs were carried out in a fixed bed reactor (FBR) with concurrent upflow. Temperature and oxygen pressure of the reactor were set to 160 degrees C and 16 bar, respectively. While phenols are quicky oxidised by the Fenton reagent higher mineralisation was obtained in the CWO process.     

Evaluation of constructed wetlands by wastewater purification ability and greenhouse gas emissions.

Domestic wastewater is a significant source of nitrogen and phosphorus, which cause lake eutrophication. Among the wastewater treatment technologies, constructed wetlands are a promising low-cost means of treating point and diffuse sources of domestic wastewater in rural areas. However, the sustainable operation of constructed wetland treatment systems depends upon a high rate conversion of organic and nitrogenous loading into their metabolic gaseous end products, such as N2O and CH4. In this study, we examined and compared the performance of three typical types of constructed wetlands: Free Water Surface (FWS), Subsurface Flow (SF) and Vertical Flow (VF) wetlands. Pollutant removal efficiency and N2O and CH4 emissions were assessed as measures of performance. We found that the pollutant removal rates and gas emissions measured in the wetlands exhibited clear seasonal changes, and these changes were closely associated with plant growth. VF wetlands exhibited stable removal of organic pollutants and NH3-N throughout the experiment regardless of season and showed great potential for CH4 adsorption. SF wetlands showed preferable T-N removal performance and a lower risk of greenhouse gas emissions than FWS wetlands. Soil oxidation reduction potential (ORP) analysis revealed that water flow structure and plant growth influenced constructed wetland oxygen transfer, and these variations resulted in seasonal changes of ORP distribution inside wetlands that were accompanied by fluctuations in pollutant removal and greenhouse gas emissions.