A statement from Viridor said: “Viridor has acquired independent integrated recycling and waste management operator Reconomy Recycling Solutions (RRS) for a cash consideration of £23.8m on a debt-free basis. The acquisition is in line with Pennon Group's (Viridor's parent company) stated strategy of expanding its waste management activities, particularly in the areas of recycling, waste treatment and disposal. “
The deal is seen as significant in terms of increasing Viridor's sorting capacity and also gives it a access to substantial amounts of waste paper, a recycling activity in which Viridor has been building on for several years and in recent deals such as the purchase of London Recycling.
Northamptonshire
RRS consists of Basecall and Oakley Waste Management and is headquartered in Northamptonshire and is considered by Viridor to be the leading independent operator in its sector in the South Midlands and East Anglia.
The acquisition means that Viridor gains three material recycling facilities (including a state-of the-art plant at Earls Barton), a fleet of over 50 collection vehicles, paper, card and plastics processing, confidential destruction, and a waste transfer station. RRS employs more than 150 people and handles about 250,000 tonnes of material per annum, of which over 150,000 is recycled.
Viridor has complementary recycling, transport and disposal assets in the operating areas notably in Peterborough and further east in Suffolk. The operations will be integrated into Viridor's south eastern region and will trade as Viridor.
Recycling
Commenting on the acquisition, Mike Hellings, managing director of Viridor said: “The UK's waste strategies demand ever-increasing levels of recycling. Reconomy has an excellent track record over recent years in providing essential recycling services to businesses in their operating region. Their innovative and professional approach will fit very well with our Viridor culture and we look forward to welcoming and working with our new colleagues.
We have a well-planned strategy which doesn't involve us aiming to be a national business
Mike Hellings, Viridor
“This acquisition fits with Viridor's strategy of expanding its materials recycling capacity, particularly where there are synergies with existing assets. It will further strengthen Viridor Resource Management's position as a leading supplier of quality recyclate volumes for UK and international markets.”
Mr Hellings confirmed that Viridor will remain on the acquisition trail but is not aiming to be a national business. “We have a well-planned strategy which doesn't involve us aiming to be a national business. And, we have strong regional businesses in Scotland, the north of England on both sides of the Pennines, the south east including London and the south west, including South Wales.”
The managing director added: “We seek tuck under acquisitions within the treatment sector – our view is that waste management is a local hands-on delivered service.”
Delighted
Patrick Macdonald, chief executive of Reconomy, said: “I am delighted that Viridor is purchasing Reconomy Recycling Solutions. Pennon Group is a great home for RRS. This is good news for employees, customers, suppliers and all other stakeholders in the business.”
Mr Macdonald added: “With the recent sale of Nutra Feed, Reconomy will remain as a customised outsurced waste management business as Reconomy Solutions which includes the Wastefile business. We will be asset-light but we have the opportunity to do exciting things in the future.”
In the sale to Viridor, Reconomy was advised by KPMG.
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