Parkwood operates in a number of sectors including landfill, recycling and liquid waste treatment. Viridor, which is part of the Pennon Group plc, said that the acquisition is in line with the group’s strategy of expanding its waste management activities, particularly in the areas of treatment and disposal.
Parkwood has a consented landfill capacity of 4 million cubic metres which brings Viridor Waste’s total consented capacity to 78 million cubic metres. It also has recycling and transfer station operations along with an associated collection fleet. In addition, it has a purpose built liquid waste treatment plant which is expected to benefit as liquid wastes are diverted from landfill under the recently introduced Landfill Directive.
Viridor chief executive Colin Drummond told letsrecycle.com that with the company's existing landfill site at Erin, 20 miles south of Sheffield, the company now had “a formidable presence in the area with substantial landfill and transfer facilities.”
Describing the Parkwood move as part of a “very focused strategy”, he added: “We have made a series of moderate sized acquisitions and we believe there is scope for continued growth in this way when there is shareholder value.”
Earnings enhancing
Pennon Group said that the acquisition of Parkwood is expected to be “earnings enhancing” in the first full year with revenues coming from across the business.
The liquid waste treatment plant is more of a long-term investment, said Mr Drummond. With liquid waste to be banned from landfill under the Landfill Directive regulations, treatment plants will become crucial.
Local protests
The Parkwood landfill in Sheffield is close to houses and has faced local protests in recent years. Mr Drummond said he was aware that there had been difficulties and that the issues “are being fully addressed” including measures to tackle odour problems.
Series of acquisitions
In April 2002 Viridor bought glass recycling firm Richardson Ltd for 11.9 million. In July this year the firm snapped up Roseland Plant Limited, a Cornish waste management and plant hire company for 9.5 million, which further increased Viridor Waste’s consented landfill capacity in the South West.
And, in October 2001 Viridor paid 8.6m for the Suffolk Waste Disposal Company Ltd, the recycling and disposal company owned by Suffolk County Council. At the same time the company announced the purchase of Lavelle and Sons, the Manchester-based transfer station, recycling and collection company for 3.6 million.
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