A spokesperson for Viridor's parent company, the Pennon Group, said that the acquisition is in line with a strategy of expanding its waste management activities.
Churngold has waste recycling and transfer stations along with associated collection activities in the Bristol area, Glasgow and Edinburgh. It complements Viridor's existing activities in the South West of England and in Scotland and is the latest in a series of strategic acquisitions by the company.
Profitable
Colin Drummond, chief executive of Viridor Waste said: “This acquisition ties in well with Viridor's strategy of pursuing profitable opportunities arising from the government's developing waste strategy.”
Ross Ancell, Churngold's chairman, said: “In the last six years, we have achieved considerable overall growth in the business, building up the waste management divisions and creating new areas of business activity such as land remediation and aggregates recycling.”
Mr Ancell added: “As a result of this growth, Churngold's highly successful waste management and recycling activities were generating opportunities that could be more readily exploited by a larger group. In turn, this transition will enable us to accelerate development in the remediation and specialist groundworks business areas.”
Churngold's retained business will centre on Construction Holdings as the main company and will have a smaller interest in the waste sector with inert and exempt landfill operations and an aggregates recycling business.
ESA
Mr Ancell is the current chairman of the Environmental Services Association and it is not known yet whether the sale to Viridor will have any impact on his chairmanship role.
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