Viridor further expands its business in North West

The acquired company is based in Leyland, Lancashire and provides waste logistics and transport solutions in connection with the Lancashire Private Finance Initiative (PFI) waste contract.

It is the latest in a growing list of recycling companies brought by Viridor in North West England, following the recent purchases of Storm Recycling in Winsford in June 2011 (see letsrecycle.com story) and two Bury-based companies – Swinnerton Environmental in January 2011 (see letsrecycle.com story) and Adapt Recycling in December 2010 (see letsrecycle.com story).

JWS Churngold is the waste logistics and transport provider under contract with Global Renewables Lancashire Operations Limited, the contractor to the Lancashire waste management PFI (see letsrecycle.com story). It provides transportation of all waste derived from the Lancashire and Blackpool local authorities transfer stations bound for Global Renewables mechanical biological waste treatment facilities at Thornton and Leyland, plus the onwards transfer of all materials for recycling or disposal.

The acquired company employs 38 people and operates a fleet of 26 vehicles, transporting up to 500,000 tonnes per annum of materials over the contract period.

Earnings

Commenting on the acquisition, Colin Drummond, chief executive of Viridor said: JWS Churngolds operations in Lancashire fit well with our existing and planned operations in the north west, including those associated with the Viridor/Laing Greater Manchester waste PFI. The acquisition is expected to be earnings enhancing in its first full year.

Viridor is part of the FTSE 250 Pennon Group. It employs over 3,200 people and handles over eight million tonnes of recyclables and waste a year.

In April 2009, Viridor signed a 4 billion waste PFI contract with the Greater Manchester Waste Disposal Authority. And, last year, the company was named as the frontrunner for Cheshire East and Cheshire West and Chester councils 850m waste contract, although the future of this project is up in the air after the government removed provisional PFI credits (see letsrecycle.com story) .