Waste Recycling Group plc today announced it had acquired Hanson Waste Management, a waste processing and disposal business, for £185 million in cash.
In 1999 Hanson Waste handled 2.9 million tonnes of waste with about 52% of turnover coming from long term contracts with local authorities.
The acquisition includes a project to build and run the planned Allington energy from waste plant in Kent which has received planning approval.
Paul Rackham, chairman of Waste Recycling Group plc, said: “The acquisition delivers a key part of our geographic expansion strategy and brings a major new waste stream supported by a significant level of contracted business and substantial consented landfill capacity for disposal of residual waste.
“In addition to substantial benefits of integration, we see opportunities for earnings growth through increasing the level of processing and recycling, especially through the four planned materials recycling facilities and through expanding electricity generation.”
In the year ended 31 December 1999, Hanson Waste achieved profit before interest and tax of 8.3 million after charging exceptional provisions of £3.2 million.