Announcing the purchase in a statement, Bedfordshire-based Kier said: “Kier Group plc has completed the acquisition of the entire issued share capital of Pure Recycling Warwick Limited ('Pure Recycling') from Pure Recycling Co Limited and the entire issued share capital of Pure Buildings Limited ('Pure Buildings') from Nicholas Spencer and Jodie Spencer.”
The purchase of Pure Recycling involves Bedfordshire-based Kier making an initial payment of £2 million, to be followed by a maximum of £5.1 million dependent on unspecified contingents.
Commenting on the acquisition, Paul Sheffield, chief executive of Kier Group, said: “We are delighted with the acquisitions which strengthen Kier's waste management and recycling business and will leave the Group well placed to take advantage of future market growth in the sector.
“In particular, we look forward to working closely with local authorities and councils to help them to achieve their recycling targets.”
MRF
Pure Recycling and Pure Buildings own a materials recycling facility (MRF) currently under development at Ettington in Warwickshire, where work is expected to be completed by March 2011.
Pure had been faced with enforcement action from Warwickshire county council in December 2009 over the Ettington site, after it failed to construct the £8 million plant and instead began to operate what the council had labeled an “unlawful” facility (see letsrecycle.com story).
However, at a meeting of its regulatory committee on January 19 2010, the county council gave chief executive Jim Graham permission to issue planning permission for tipping and restoration operations at the Ettington site after a retrospective planning application was submitted by Pure.
Once complete, the 39,000 tonnes-a-year capacity facility is also set to receive recyclable material from Rugby borough council and Stratford-upon-Avon district council, which have committed 8,000 tonnes-a-year and 10,000 tonnes-a-year each, respectively.
Representatives of Pure Recycling were unavailable to comment on the sale of the firm
Tewkesbury
The announcement of the Kier purchase comes one week after Tewkesbury borough council named Pure as its recycling collection contractor to cover the 36,000 households in the Gloucestershire local authority area.
Kier today confirmed to letsrecycle.com that it would be fulfilling this commitment following the purchase of Pure Recycling. A spokeswoman said: “The Tewkesbury contract, like any other held by [Pure Recycling] will carry on.”
Under the contract, the company will be responsible for bulking, transfer, processing and disposal of commingled dry recyclables collected at the kerbside, which include: paper, card, cardboard, aluminium and steel cans, mixed glass, and plastic bottles.
Tewkesbury had anticipated letting the two-year contract for £300,000 but managed to award it for £132,400 less.
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