UK integrated waste management company, Biffa has announced it has acquired Weir Waste Services Limited (WWS) for a consideration plus debt taken on of circa £16.2m, funded from Biffa’s existing cash and debt facilities.
For the year ending 31 May 2017, WWS generated revenues of £16.1m, had a reported EBITDA of £2.2m, operating profit of £1.1m and gross assets of £14.5m, and has a workforce of circa 120 people.
WWS is highly complementary to Biffa’s existing business, combining a commercial collection business which serves circa 1,600 customers, and operates a frontline fleet of 45 vehicles and a substantial recycling and waste treatment operation from a seven-acre freehold site at a key location in Birmingham.
“The Weir Waste business significantly strengthens our presence and customer offer in Birmingham and the Midlands while the other acquisitions further enhance our platform in their respective markets.”
The business will be incorporated into Biffa’s Industrial & Commercial division, enabling the combined business to broaden its customer offering throughout Birmingham and the West Midlands and to deliver operational and procurement benefits.
The addition of WWS’s infrastructure to Biffa will further enhance its capabilities in the region, it says.
Biffa also announces that it has agreed a further three acquisitions in the current financial year for a total consideration plus debt taken on of £3.9m, adding annual revenue of £4.9m, comprising: the trade and assets of H&A Recycling Limited (subject to satisfaction of certain conditions), a commercial waste collection and recycling business in Cornwall; the trade and assets of Bisset Waste Management Limited, a commercial waste collection business in Scotland, and certain trade and assets of Vecta Group Limited, a waste collection business in East London.
All three acquisitions will also be incorporated into Biffa’s Industrial & Commercial division.
Michael Topham, Chief Financial Officer and CEO – designate of Biffa, said: “The acquisitions we have announced today demonstrate our ongoing ability to identify and execute value accretive acquisitions across the UK.
“The Weir Waste business significantly strengthens our presence and customer offer in Birmingham and the Midlands while the other acquisitions further enhance our platform in their respective markets.
“We welcome the staff and customers of these businesses to Biffa.”