The deal, announced by Viridors parent company the Pennon Group Plc today (October 9), was for a total consideration of 9 million. This includes 8.6 million in cash and 400,000 in net debt.
The acquired business processes around 100,000 tonnes per annum of used newspapers, paper and cardboard and employs 40 people.
Viridor already has a strong presence in the area, operating a large materials recycling facility (MRF)at Crayford, just three miles away from Erith, following its acquisition of Grosvenor Waste Management in 2007 (see letsrecycle.com story).
Colin Drummond, Viridor chief executive, said: “The acquisition of this paper collection and processing business is in line with the Group’s strategy of expanding its waste management activities, particularly in collection and recycling. The acquisition is expected to be earnings enhancing in its first full year of operation.”
Graham Warren, the Viridor South East regional director, said: Making the most of our waste is becoming key in the UK and it is an approach proven to be good for business. This operation has built an excellent track record over recent years in producing high quality grades of paper and cardboard which are essential for the making of new products and packaging from secondary materials.
The company’s innovative and professional approach will fit very well with our Viridor culture and we look forward to welcoming and working with our new colleagues.
Paper
Pulp Friction was established in 1995 and describes itself as one of the country’s leading paper merchants.
Scott O’Brien, sales director of Pulp Friction, confirmed that he would be joining Viridor. He said: “I am pleased to be joining a forward-looking business which is a major force in recycling.”
The firm operates 24 hours a day 7 days a week from its industrial estate base in Erith, close to junction 1a of the M25 motorway. Material comes from London and surrounding areas as well as from further afield. Mixed papers come in from Norfolk and newspapers and magazines arrive from Swansea. Other bulk supplies come from newspaper and magazine distributors. The company has recycling depots across the UK in Birmingham Manchester, Liverpool, Newcastle and Worcester.
Pulp Friction already had some links to Viridor, as its operations director, Ben Cox, was involved with the development of the Crayford Materials Recycling Facility (MRF) by Grosvenor Waste Management.
SBS Paper LLP was established in early 2009. It operates a sorting plant at Erith where it sorts and bales over 62,000 tonnes of paper a year.
Viridor said the business would fit well with Viridors strategy of operating recycling facilities that provide high quality recycled materials for reprocessing and that the operations will be integrated into Viridor’s south eastern region and will trade as Viridor.
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