Acquisition

RNS Number : 9797H

Pennon Group PLC

07 June 2011

 

7 June 2011

Pennon Group Expands its Waste Management Business

Pennon Group PLC announces that its subsidiary, Viridor Waste Management Limited, has acquired Storm Recycling Limited, a family owned cardboard and plastics recycling business, with associated collection, based in Winsford, Cheshire from Mr and Mrs John Buddle for a cash consideration of £1.7m.  The acquisition is in line with the Group's strategy of expanding its waste management activities, particularly in the recycling sector.

The acquired company comprises a strategically located recycling depot off Junction 18 of the M6 in Cheshire where the majority of tonnage is derived from medium term (3-5 year) contracts.  It handles around 20,000 - 25,000 tonnes of cardboard and plastic per annum.

Commenting on the acquisition, Colin Drummond, Chief Executive of Viridor said, "The UK's waste strategy demands ever increasing levels of recycling whilst the world has an increasing demand for raw materials including recyclate.  Recycling is a fast growing part of Viridor's business and accounted for around 25% of the Company's profits in 2010/11.  This acquisition has an excellent geographic and business fit with Viridor's existing operations in the North West of England and complements our existing recycling activities elsewhere in the UK.  The recyclate from Storm Recycling will also provide additional volumes for our international trading arm.  The acquisition is expected to be earnings enhancing in its first full year."

Further information on Pennon Group and Viridor can be found on the Group's website, www.pennon-group.co.uk  A 3 minute introduction to Viridor's Materials Reclamation Facilities (MRFs) can be seen on www.youtube.com/user/ViridorTV 

For enquiries please contact:

Sally Hogan or Katie Johnson, Finsbury on 020 7251 3801

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