Biffa plc announced today (9 October) that it had acquired Simply Waste Solutions which it describes as “a leading industrial and commercial waste collection business in the south of England”.
Simply Waste Solutions was founded in 2005 by James Capel. He had spent 10 years with Biffa in a senior traffic control post and as a depot general manager before leaving in 2005 to set up the Simply Waste Solutions business.
James Capel has sold to Biffa, where he worked before setting up Simply Waste Solutions
Biffa explained that it had acquired “100% of the share capital of Camo Limited, which trades under the Simply Waste brand, for an upfront debt and cash free consideration of £35m.”
The deal is to be funded from existing committed debt facilities. For the year ending 31 March 2020, Simply Waste reported revenues of £32m, EBITDA of £5.2m, operating profit of £3.1m and gross assets of £16.4m.
A potential further consideration of up to £5m may become payable, depending on the performance of the business through to 31 March 2021.
‘Align well’
In a statement, Biffa said: “Simply Waste is a prominent, well-regarded operator in the south of England. Its operational locations in west London, Oxfordshire and Bristol align well with Biffa’s existing portfolio, and once merged into the Biffa I&C collection network will result in an enhanced customer proposition and a lower-carbon, more efficient collection network.”
Michael Topham, Biffa chief executive, emphasised Biffa’s plans to grow its I&C business
Michael Topham, Biffa chief executive, commented: “The acquisition of Simply Waste demonstrates further progress against our strategic plans. We have a clear focus to grow our Industrial and Commercial business through acquisitions as a natural consolidator within this fragmented market.
“We are delighted to welcome the Simply Waste team and their customers to Biffa. Simply Waste has an excellent reputation, complementing Biffa’s existing footprint in the south of England, and I am confident that this acquisition will enhance the strength of our service offering in the region for our combined customers.”
Innovative
James Capel, chief executive and majority owner of Simply Waste, commented: “Simply Waste is a fast growing and innovative business with its people and customers at the heart of everything it does.
Simply Waste areas of operation include London and Bristol
“I am delighted that the acquisition of Simply Waste by Biffa will build on these values and that the combined business will help deliver an even stronger and more efficient business. I am proud to have led this business from start up to exit and look forward to helping bring the businesses together.”
Simply Waste Solutions is also known for its charity work, which included events at the Tower of London, raising money for the Shooting Star Children’s Hospices which it has supported since 2016.
Earnings
The acquisition is said to the earnings per share for Biffa from the outset and “will deliver synergies from operational benefits.”
The deal, said Biffa, is in line with its strategy to grow its industrial and commercial operations, so it can consolidate “its leading position in this highly fragmented market, and its ambition as set out in its sustainability strategy to create the UK’s most efficient, low-carbon collection operation.”
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Source: letsrecycle.com Waste Managment
