Waste management firm Biffa has today (12 March) announced that it has acquired the outsourcing company Specialist Waste Recycling Limited – SWRNewstar – in a deal worth more than £25.8 million.
SWRNewstar was formed in 2017 through a merger of the waste brokerage businesses Specialist Waste Recycling, based in Alton, and Buckingham-based New Star Environmental (see letsrecycle.com story).
SWRNewstar’s business model is to provide waste and recycling solutions to its customers nationwide, with the physical delivery of the service provided by a network of sub-contractors.
Biffa is an established sub-contractor to SWRNewstar, the company said, servicing around 11% of SWRNewstar’s network.
‘Routes to market’
The acquisition provides Biffa with the opportunity to increase the proportion of work serviced by its’ collection and processing network, as well as “expanding routes to market”, it added.
For the year ended 31 December 2018, SWRNewstar generated revenues of £40.1 million and had gross assets of £15.7 million. The business also brings with it a workforce of more than 90 people.
Commenting on the deal, Michael Topham, chief executive of Biffa, said: “The acquisition of SWRNewstar represents a compelling opportunity for Biffa and provides further evidence of our ability to identify and execute cash flow enhancing and earnings accretive acquisitions.
“Bringing together SWRNewstar with Biffa’s leading Industrial & Commercial business will strengthen our offering while enabling us to profitably leverage our national network. We welcome the staff and customers of SWRNewstar to Biffa.”Michael Topham
“Bringing together SWRNewstar with Biffa’s leading Industrial & Commercial business will strengthen our offering while enabling us to profitably leverage our national network. We welcome the staff and customers of SWRNewstar to Biffa.”
The acquisition, from a consortium including the Scottish entrepreneur Angus MacDonald OBE, comes less than a week after Biffa released a trading update ahead of its financial results for the 2018/19 financial year, which it says are anticipated to be “in line with the board’s expectations” (see letsrecycle.com story).
The move also caps a busy 12 months for the waste management company, which acquired Weir Waste Services in August 2018, along with the trade and assets of H&A Recycling and Bisset Waste Management Limited, as well as certain trade and assets of Vecta Group Limited, a waste collection business in East London.