Acquisition

Shanks Group PLC
30 June 2006



Friday 30th June 2006

Company Announcement

Shanks Group plc: €63 million acquisition of Dutch Group: Smink Beheer BV


Shanks Group plc, a leading European waste management company, has today
announced the acquisition from the Smink family of the entire share capital of
Smink Beheer BV (Smink) for a gross consideration of €86m in cash, €63m net of
the cash in the acquired entity.  An additional €2.5m is payable upon expansion
of the scope of a permit for the company's landfill activity.

Smink is an established integrated waste collection, recycling and landfill
disposal business based in Amersfoort, east of Utrecht, in the Netherlands, with
expertise in commercial and industrial waste management.  There is also an
ancillary infrastructure building activity (eg roads and drainage) operating
locally.  Smink employs some 170 people and processes approximately 0.5m tonnes
of waste annually.

Smink's last published results for the year ended 31 December 2005 showed a
profit before tax of €13.5m which included one-off gains totalling approximately
€4.8m. Gross assets were €51.0m.

Commenting on the transaction, Shanks Group plc Group Chief Executive, Michael
Averill, said:  'We are delighted with this acquisition which expands our
geographic coverage eastwards from our strong presence in the Randstadt area.
As the Smink solid waste activities are similar to our existing business we will
serve our target customers over a wider area.  The acquisition is expected to be
earnings enhancing in the current year.'


For further information contact:

Michael Averill, Group Chief Executive
Fraser Welham, Group Finance Director
Shanks Group plc
Telephone [phone]

Or

Ginny Pulbrook
Citigate Dewe Rogerson
Telephone [phone]


Ends


                      This information is provided by RNS
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