Reconomy says that the acquisition confirms its intent “to further grow our market leading position within the national recycling and waste market and consolidates our position as the UK’s leading outsourced provider of recycling and waste services.”
The deal, announced yesterday (28 January 2015) also sees Countrywide subsidiary MT Waste of Milton Keynes becoming part of Reconomy. The sale price has not been disclosed. Countrywide had a turnover of £11.3 million in 2013.
Reconomy provides a national service through outsourcing and is a major player in supplying skip services to the construction sector. Countrywide and MT Waste had similarities in their work with MT Waste saying that it had “access to over 1,000 depots strategically located”.
‘Leading provider’
Paul Cox, managing director of Reconomy, said: “We are delighted to have acquired Countrywide Waste Management Limited to further establish ourselves as the leading provider of waste services to the construction (and related) industries. The synergies between the two businesses, both in terms of culture and customer base, means Reconomy will quickly benefit from an increased supply chain that can deliver enhanced customer requirements, satisfaction and competitive prices.”
While the new deal will strengthen the company’s role, it is also expected to bring challenges in the form of merging IT and customer systems. Reconomy has highlighted its Reconomy Portal to customers who “get real-time visibility of your waste streams from creation to disposal, keeping you up-to-date and in control.”
In the short term, the newly acquired companies are tocontinue to operate separately with no anticipated disruption to day-to-day operations.
Reconomy noted that “the enlarged Reconomy group of companies will have a combined turnover in excess of £80 million and demonstrates a significant step toward ensuring we continue to provide industry leading services to an increasing number of clients that view outsourcing their recycling and waste services as the most efficient method of managing their waste.”
And, in a message to customers, the company said: “In the short term each business will continue to be run separately, therefore there will be no disruption or change on a day to day basis and you should continue to deal with any orders, invoices and service related questions with each individual business via your usual relationships and contacts.”
Bregal Capital
Reconomy is owned by Bregal Capital which, ahead of the recession, in July 2006 formed Reconomy (Holdings) Limited as the holding company to develop a business in the recycling-led waste management sector within the UK. Since then, according to Bregal, Reconomy has made 13 acquisitions in various waste management businesses. In 2010 Bregal sold the asset backed business of Reconomy to Viridor but retained Reconomy Solutions which it describes as “the leading national outsourced waste services provider which operates nationwide recycling focused waste management and compliance services, delivering enhanced environmental and financial performance for their customers.”
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