Biffa said the deal expands its collections business and recycling capabilities, “while solidifying its leading position in UK sustainable waste management”.
Completion of the deal is expected no earlier than August, following the necessary separation steps and subject to Competition and Markets Authority clearance.
Michael Topham, chief executive of Biffa, said: “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.”
“We look forward to welcoming our new colleagues from Viridor to Biffa in due course”
Collections
Through the acquisition, Biffa will acquire Viridor’s nationwide industrial and commercial fleet of 270 vehicles along with 15 depots across the UK.
The acquisition will also add two household waste recycling centre contracts in West Sussex and Glasgow to the municipal business, which generated £11m of revenue in 2020.
“The acquisition will significantly enhance the benefits of scale which the Group already leverages through its I&C platform delivering customer, environmental and financial benefits,” Biffa added.
Resource and energy
Biffa says the deal will also see it acquire a portfolio of recycling and treatment facilities with revenues of £39 million.
The facilities include materials recycling, composting and anaerobic digestion – “all of which are core capabilities for Biffa”.
Biffa said 80% of Viridor’s revenue in this area is from contracts with remaining terms of eight years or more.
The company added that these assets processed a total of 272,000 tonnes of material during FY20 and will “increase Biffa’s control of plastics feedstock into its closed-loop plastic recycling operations with c. 22,000 tonnes of annual long-term supply”.
Briefing
[Update 09:56] In a webcast shortly after the announcement, Biffa gave further details of the assets it has acquired.
The acquisition includes three waste transfer stations in Edinburgh, Sheffield and Cornwall, 15 depots across the country and ‘wet waste depots’ in Slough, Thurrock and Taunton.
The eight recycling assets comprise of four MRFs (Ford, Plymouth, Milton Keynes and Masons) three composting facilities (Priorswood Walpole and Dimmer) and an AD plant in Walpole.
The deal also includes agreements with Viridor’s energy recovery facilities to “secure long term cost-effective low carbon outlets for non recyclable waste in the UK”.
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