The acquisition of the Bristol-based business will strengthen SITA's presence in the South West of England.
” This acquisition reinforces our position in this important regional market“
– Per Anders Hjort, SITA UK
SITA already operates a number of commercial and local authority contracts in the area, including the PFI contract with South Gloucestershire council.
The firm sees the region as “increasingly important” to its activities, with a recent collection contract win with East Devon district council and the naming of SITA as preferred bidder for the 30-year Cornwall PFI contract.
SITA, owned by French utilities firm Suez, will move from the second-largest to the third largest waste firm operating in the UK should Veolia's current bid to buy Cleanaway be cleared by competition authorities (see letsrecycle.com story).
Through about 300 sites nationwide, the company currently handles about 10 million tonnes of waste each year in the UK, recycling about 1.5 million tonnes.
Hemmings
Family-run Hemmings has its headquarters in Bristol, serving industrial and commercial customers in Avon, Somerset, Wiltshire and Gloucestershire.
Involved with waste since 1964, the company runs two landfill sites in the Bristol area , with commercial customers ranging from small shops to blue-chip companies.
SITA said the acquisition of Hemmings would bring cost savings through a more efficient use of transport and depot facilities. It said the acquisition was “consistent with Suez Environment's strategic development plan that aims to expand its waste portfolio in Northern European countries”.
Per Anders Hjort, chief executive at SITA UK said: “This acquisition reinforces our position in this important regional market and provides us with an additional commercial network. The anticipated synergies in all business lines will allow us to accelerate our organic growth in the local authority and industrial sectors in this region.”
Speaking at a postgraduate research event organised by university waste research network WARMNET on Friday, SITA strategy and external affairs director Marek Gordon said he expected his company's turnover to grow from 600 million to about 700 million by 2007, largely through organic growth.
He said the fastest growing part of the business was its integrated waste management division, the side of the business bidding for large-scale municipal waste contracts with councils.
As well as in Cornwall, SITA has been named as preferred bidder in Northumberland, and is one of the shortlisted companies for the 100 million-a-year long-term Greater Manchester contract.
Subscribe for free