Acquisition

RNS Number : 7505A

Pennon Group PLC

07 February 2011

 

7 February 2011

Pennon Group Expands its Waste Management Business

Pennon Group PLC announces that its subsidiary, Viridor Waste Management Limited, has acquired Martock Waste Paper Limited, a leading materials recycling company head-quartered in Somerset from Mr N Bowers, Mr R G Bowers and Mrs S Bowers for a cash consideration of £7.4m on a debt free basis. 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 recycling facility and associated collection activities based in Martock, Somerset, between Taunton and Yeovil.  It handles around 50,000 tonnes of paper and other recycled material 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 26% of the Company's profits in the first half of 2010/11.  This acquisition has an excellent geographic and business fit with Viridor's existing operations in Somerset and provides additional volumes for our international trading arm.  It is expected to be earnings enhancing before amortisation of intangibles 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

For enquiries please contact:

Colin Drummond, Chief Executive, Viridor on 01823 721435

Jo Finely, Investor Relations Manager, Pennon Group on 01392 443401

Sally Hogan, Finsbury on 020 7251 3801

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