Viridors parent company Pennon Plc announced today (November 30) that the company had been acquired by Viridor for a total consideration on a debt-free basis of 15.75m.
For Community Waste the sale marks the end of a close involvement with materials recycling facilities which had brought together the London-based paper recycling firm Atlantic Paper and the Yorkshire-based recycler Cutts Bros. Viridor noted in its statement that the business was previously owned by the Community Waste Holdings Foundation, Ms C Cutts and Ms G Cutts.
Community Waste Recycling has a number of medium and long-term municipal contracts in the south east of England and a total current annual volume of 90,000 tonnes.
Its main operations are: a materials recycling facility (MRF) capable of handling 100,000 tonnes of material a year in Milton Keynes, Buckinghamshire, processing co-mingled dry recyclables; and, a smaller MRF in Enstone , processing municipal and commercial recyclables; and a trading arm located in London. The company currently employs 69 people, plus 80 agency staff.
In December 2009, Community Waste signed a 15-year contract worth 150 million to keep sorting dry recyclables on behalf of Milton Keynes council (see letsrecycle.com story).
Colin Drummond, chief executive of Viridor, said that recycling was becoming increasingly important to Viridor already accounting for almost a third of its profits (see letsrecycle.com story).
He said: The UKs 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 Viridors business and accounted for around 31% of the companys profit contribution in the first half of financial year 2011/12. Community Wastes operations in Buckinghamshire and Oxfordshire fit well with our existing operations and strategy in the south east, and also provide additional volumes for our international trading arm. The acquisition is expected to be earnings enhancing in its first full year.
Recycling
In its 2011/12 half year results, Viridor said that it was now the largest materials recycling facility operator in the UK and the acquisition of Community Waste will strengthen this position. On its website, Community Waste describes itself as solely a recycling company, rather than a waste management business, treating material as a valuable resource and not a waste to be disposed of.
Graham Warren, Viridor south east regional director, said: Community Waste Recycling has an excellent track record in providing essential recycling services to businesses and councils in its operating areas. Their professional approach, smart technology and high quality service delivery will fit very well with Viridors culture and we look forward to welcoming and working with our new colleagues and clients.
Bruce Terrell, Community Waste Recycling managing director, said: Were delighted that Viridor is purchasing the business, as the company is a leader in our sector. Becoming part of Viridor will present good opportunities for employees, customers, suppliers and all other stakeholders in the business.
Community Waste Ltd is the third company to be acquired by Viridor in the 2011/12 financial year, following the takeover of Storm Recycling and JWS Churngold, but it is the first based outside of north west England. In 2010/11, Viridor also made five acquisitions.
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