Hampshire skip hire and recycling company Raymond Brown Minerals & Recycling has purchased a waste management company in Oxfordshire after it went into administration.
Chilton Waste Services, which is based in Didcot, Oxfordshire, was purchased from administrators BDO through a pre-pack administration agreement on May 25 2012, the same day the company officially entered administration.
The purchase is expected to strengthen Raymond Browns presence in the South East and includes Chilton Waste Services trade, plant and equipment plus its 13 acre freehold site.
The Chilton site is host to a waste transfer station, a materials recycling facility (MRF) and a former landfill site. The total capacity of the site is 150,000 tonnes of waste a year. Waste for the facility is primarily collected from businesses in the surrounding area which includes Didcot, Newbury and Oxford.
Raymond Brown Minerals & Recycling handles plant and skip hire, aggregates recycling, landfill restoration and waste transfer stations and MRFs on behalf of the Raymond Brown Group.
Staff
Following the acquisition Chilton continues to operate as normal but under the Raymond Brown name. The 33 staff previously employed by Chilton have also transferred.
Speaking to letsrecycle.com, Kelvin White, managing director of the Raymond Brown Group, said: The acquisition fits in line with our plans. We have got a number of facilities in Andover, Romsey, Thruxton, as well as others. What works for us is establishing a network with about 30 miles between each facility.
We produce an annual strategy and this was exactly what we were looking to acquire and it was a plus that a lot of the processes and customer base was established.
Mr White said that the acquisition of Chilton Waste Services is expected to add almost 3 million in annual turnover to Raymond Brown Minerals & Recyclings waste division, which is currently turning over 6 – 7 million every year.
Facility
Mr White explained that following the acquisition Raymond Brown Minerals & Recycling would aim to improve recovery rates at the site from approximately 30% to over 90%, which is currently achieved at the companys other sites.
The facility will become part of Raymond Browns waste network which includes Rookery Farm in Swanwick, Blue Haze near Ringwood, Casbrook Park in Romsey, Lee Lane in Southampton, Thruxton, and Longparish near Andover. The Andover site hosts an inert material recycling facility and a MRF.
In a bid to increase waste recovery rates, Raymond Brown is investing in a new picking station for the Chilton facility which will replace the older system currently in place. In addition to this further work will be carried out to repair damage to the site caused by a fire in February 2012.
Mr White said: We expect to be able to make a difference within three months. We have put a lot of resources into this.
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Contracts
Mr White claimed that one of the reasons that Chilton entered into administration was the loss of a contract with a Berkshire local authority. However he said that Raymond Brown would look to work with councils going forward.
Mr White said: One of the reasons for the failure of Chilton Waste Services was the loss of the local authority contract in 2010. That reduced the business significantly. However we will look to secure them going forward.
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