The acquisition, the second for Reconomy this year, follows the purchase of Countrywide Waste Management Ltd in January 2015, and maintains the significant period of growth for the Telford based company over the last four years which could see it reach a turnover of c£90 million this year.
In operations similar to its new owner, Network Waste, which was formed in 2002, provides a national service through using a network of operators. Network, based in King’s Lynn, Norfolk has explained its work as producing “a network of compliant, competitively priced, local independent waste operators who could together provide a national network to guarantee national coverage to our customers and which allowed us to place huge amounts of customer care on top of the front end waste service.”
Paul Cox, managing director of Reconomy, said, “We are delighted with the acquisition of Network Waste – it’s an excellent business and like Reconomy it has a strong team that is performing well. It has been very successful in recent years with an excellent customer base which complements that of Reconomy. The business has a strong focus on staff development and a company culture that we feel will not only work well with Reconomy but also help us to grow and enhance our unique approach to waste management.”
Mr Cox continued: “The acquisition of Network Waste further underlines Reconomy’s position as a clear leader in its field and we are looking forward to working together to develop the combined business.
“We will continue to invest in Network Waste and look to strengthen our workforce in the coming weeks and months to ensure we maintain a first class service to our customers. There is no denying it’s been an incredibly busy period for all involved at Reconomy, however we are all excited by the challenge of continuing this growth into 2016 and beyond.”
Reconomy’s workload is in two main sectors: construction and business/industrial. After the Countrywide acquisition, the company employed about 180 staff.
Mr Cox has long experience and knowledge of the sector, having developed his own dry waste business in the early 1990s. He then helped create the WasteFile organisation in 1999 and took part in a management buyout in 2001.
WasteFile was acquired in July 2006 by Englefield Capital and renamed Reconomy Solutions to be the holding company for the development of a recycling business with trucks and depots. A number of asset-based acquisitions were then made, including Oakley Waste Management and Anglia Recycling.
After the recession, a review of activities took place and in 2010 it was agreed to sell the asset-based part of the business to Viridor, leaving the outsourcing arm under the Reconomy umbrella.
Englefield itself was acquired by Reconomy’s current ultimate owners Bregal Capital. Bregal says that the company “has delivered outstanding growth in sales and profitability through key customer relationships in the housebuilding, construction, utilities and FM sectors.”