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Viridor buys London Recycling for 11 million

Viridor has today (June 8) announced that it has completed the acquisition of east London-based office waste recycling company London Recycling Ltd for £11 million.

Somerset-based Viridor, which is owned by the FTSE-100 listed Pennon Group, said that it had made the purchase because it was in-line with its strategy of expanding its materials recycling capacity.

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London Recycling Ltd has been established since 1986 and handles approximately 50,000 tonnes of material a year, collecting waste for recycling from businesses in the capital.

It is one of the key names in the office waste recycling sector in London, alongside Paper Round.

London Recycling runs paper processing and confidential destruction services, a WEEE facility, a 15,000 tonne-a-year capacity materials recycling facility, a waste auditing facility, paper processing and a fleet of collection vehicles, based across three sites in West Ham.

Viridor said it had complementary recycling, collection and disposal assets in the operating areas, and that it would integrate London Recycling's operations into its south-east region, where they will trade as Viridor.

Commenting on the purchase, Viridor's managing director, Mike Hellings, said: “”The UK's waste strategies demand ever-increasing levels of recycling. London Recycling has an excellent track record over recent years in providing essential recycling services to businesses in the capital.

“Their innovative and professional approach will fit very well with the Viridor culture and we look forward to welcoming and working with our new colleagues.

“This acquisition fits with Viridor's strategy of expanding its materials recycling capacity, particularly where there are synergies with existing assets,” he added.

Viridor expects the acquisition to enhance its earnings before amoritisation of intangibles in its first full year of ownership.

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