Hales accounts for about 2% of the UK waste market, including solid waste collection services from industrial and commercial premises, as well as infrastructure including waste transfer stations, materials recycling facilities and landfill sites.
In the period up to December 2002, Hales had a turnover of about 112 million and profit before tax of about 9 million. Hales has a strong presence in London and East Anglia, where Biffa has been keen to build up its presence.
The deal comes on the back of Biffa's acquisition of UK Waste in September 2000.
Commenting on the deal, Biffa managing director Martin Bettington said: “Hales consolidates Biffa's position as one of the leading players in the UK and expands our operations into some new geographical areas. I am delighted that we have the opportunity to build on the successful acquisition of UK Waste.”
A statement released this morning from Biffa's parent company Severn Trent said that the deal would deliver pre-tax synergies of around 7.5 million a year, mainly from the enlarged collection infrastructure, improvements in the use of vehicles and in the integration of IT, regional management and head office costs. These are expected to be delivered by December 2004.
Robert Walker, group chief executive of Severn Trent, said: “Acquisition of Hales represents another step in growing Biffa's UK waste business and further contributes towards Severn Trent's goal of becoming the UK’s leading integrated environmental services business.”
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