Biffa has acquired Weir Waste Services, a major waste and recycling business in the West Midlands.
And, Biffa also revealed today (17 August) that it has made three further acquisitions in the current financial year.
The purchase of Weir Waste is by far the largest of the three was purchased for “a consideration plus debt taken on of c. £16.2 million” which was funded from Biffa’s existing cash and debt facilities.
Part of the Weir fleet pictured in the West Midlands
In a statement Biffa noted that for the year ending 31 May 2017, Weir Waste generated revenues of £16.1 million, had a reported EBITDA of £2.2 million, operating profit of £1.1 million and gross assets of £14.5 million. The workforce totals around 120.
The company is based just a few miles from the centre of Birmingham in Duddeston and has a further site in Oldbury which runs an automated MRF.
‘Complementary’
For Biffa, the deal is seen as further strengthening its operations in a competitive region of the UK, and Biffa claimed that the deal is “highly complementary” to its existing business, “combining a commercial collection business which serves c. 1,600 customers, and operates a frontline fleet of c. 45 vehicles and a substantial recycling and waste treatment operation from a seven-acre freehold site at a key location in Birmingham”.
Weir Waste will be incorporated into Biffa’s Industrial & Commercial division with the aim of delivering operational and procurement benefits. And, confirming its increased strength in the West Midlands, Biffa said: “The addition of WWS’s infrastructure to Biffa will further enhance its capabilities in the region.”
Weir Waste’s waste transfer station at Trinity Street, Birmingham
Weir Waste is a member of the National Resource Consortium which says it can “take away the pain of national waste management and recycling for your business” and it is not known what its future involvement will be with the consortium.
Further 3 acquisitions
Alongside the announcement of the Weir Waste deal, Biffa announced that it has agreed a further three acquisitions in the current financial year consisting of:
- the trade and assets of H&A Recycling Limited (subject to satisfaction of certain conditions), a commercial waste collection and recycling business in Cornwall;
- the trade and assets of Bisset Waste Management Limited, a commercial waste collection business in Scotland,
- and certain trade and assets of Vecta Group Limited, a waste collection business in East London.
All three acquisitions, as with Weir Waste, will also be incorporated into Biffa’s Industrial & Commercial division. Total consideration, for the deals, plus debt taken on totalled £3.9 million and annual revenue added will be around £4.9 million
Ability
Michael Topham, chief financial officer and CEO – designate of Biffa, said: “The acquisitions we have announced today demonstrate our ongoing ability to identify and execute value accretive acquisitions across the UK. The Weir Waste business significantly strengthens our presence and customer offer in Birmingham and the Midlands while the other acquisitions further enhance our platform in their respective markets.”
And Mr Topham offered a welcome to “the staff and customers of these businesses to Biffa.”
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Source: letsrecycle.com Waste Managment
