The total consideration on a debt-free basis was GBP15.75m, and the acquisition enables Pennon to expand its waste management activities, particularly in the recycling sector.
The acquired business, which operates in the south east of England, has a number of medium and long-term municipal contracts and a total current annual volume of 90,000 tonnes.
The business’ main operations are a materials recycling facility (MRF) in Milton Keynes, Bedfordshire, processing co-mingled dry recyclables; an MRF in Enstone (northwest of Oxford) processing municipal and commercial recyclables; and a trading arm located in London.
Viridor CEO Colin Drummond said Community Waste’s operations in Bedfordshire and Oxfordshire fit well with the company’s 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," Drummond said.
Community Waste Holding and Community Waste Recycling is a specialist materials recycling and paper trading business based in Milton Keynes.
