The transaction will enable Biffa to boost its recycling of post-consumer materials in the UK
Biffa has agreed to acquire Viridor’s collections business and majority of recycling assets. (Credit: Ben Kerckx from Pixabay)
Waste management company Biffa has agreed to purchase collections business and the majority of recycling assets from Viridor for a cash consideration of £126m.
The transaction allows Biffa to acquire Viridor’s network of 15 industrial and commercial (I&C) depots for business waste.
It will help Biffa to expand its own low carbon collections business, as well as add nearly 21,000 customers to its nationwide portfolio.
Biffa’s network will also help to enhance its position to meet upcoming regulatory changes to collections services, including compulsory recycling and food waste.
With the addition of eight recycling assets, Biffa will also expand its capabilities across specialist services and resources and energy operations.
The acquisition will enable Biffa to strengthen its recycling of post-consumer materials in the UK.
It will also help boost its presence in closed-loop recycling by securing a long-term supply of 22,000 tonnes of plastics feedstock per annum for its polymers business.
The acquisition is in line with the group’s strategy to quadruple plastic recycling capacity by 2030.
Biffa stated that the acquisition shows its commitment to its sustainability strategy, ‘Resourceful Responsible’, which the group introduced in March last year.
The acquired assets will help Biffa to further improve its capability to support its customers increase their recycling rates via enhanced flexibility of coverage and service.
In addition, the increased route density across the group’s collections fleet will enable it to minimise carbon emissions.
Biffa chief executive Michael Topham said: “The acquisition of Viridor’s Collections business, and certain Recycling assets, is a compelling opportunity for Biffa.
“The addition of Viridor’s £85m collections revenues builds on the Group’s strong track record as the leading market consolidator in the highly fragmented I&C collections market.”
In October last year, Biffa acquired Simply Waste Solutions, a major industrial and commercial waste collection business in the south of England.