National recycling and waste management provider, Biffa, has agreed to buy the collections business and certain recycling assets of Viridor Waste Management for a cash consideration of c.£126 million.
The deal will see Biffa acquire Viridor’s network of 15 Industrial and Commercial (I&C) depots for business waste, and brings an additional 21,000 customers into the Group’s nationwide portfolio.
The transaction will also enable Biffa to further extend its capabilities across its Specialist Services and Resources & Energy operations, adding eight further recycling assets and increasing its capabilities in wastewater collection and treatment.
According to Biffa, the acquisition will “strengthen the company’s position as one of the largest recyclers of post-consumer materials in the UK” and “reinforces the Group’s leading position in closed-loop recycling”, securing a long-term supply of c.22,000 tonnes of plastics feedstock per annum for its world-leading Polymers business, in line with the Group’s strategy to quadruple plastic recycling capacity by 2030.
Michael Topham, Chief Executive of Biffa plc commented:“The acquisition of Viridor’s Collections business, and certain Recycling assets, is a compelling opportunity for Biffa.
“The addition of Viridor’s £85 million collections revenues builds on the Group’s strong track record as the leading market consolidator in the highly fragmented I&C collections market. In addition, the acquired recycling and treatment assets broadens our coverage and control of materials, strengthening Biffa’s position as one of the largest recyclers of post-consumer materials in UK.
“When combined with the other investments we have made over the past year across waste reduction, recycling and energy recovery, we have positioned the Group as a leading enabler of the UK circular economy, ready to tackle the UK’s waste challenge. We look forward to welcoming our new colleagues from Viridor to Biffa in due course.”
The acquisition is expected to complete in August subject to clearance from the Competition and Markets Authority.