Pennon Group Subsidiary Acquires U.K. Recycler

Pennon’s Viridor subsidiary purchases Storm Recycling to expand its recycling operations in the United Kingdom.

Pennon Group plc, Exeter, U.K., has announced that its subsidiary, Viridor Waste Management Ltd., has acquired Storm Recycling Ltd., a Cheshire, U.K.-based old corrugated container and plastics recycling business for 1.7 million pounds (US$2.8 million). According to a release, the acquisition is in line with Pennon Group’s strategy of expanding its waste management activities, particularly in the recycling sector.

Storm Recycling handles around 20,000-25,000 metric tons of old corrugated containers (OCC) and plastics per year.

In making the acquisition, Colin Drummond, Pennon Group’s CEO, says, "The UK's waste strategy demands ever-increasing levels of recycling, while the world has an increasing demand for raw materials including recyclate. Recycling is a fast growing part of Viridor's business and accounted for around 25 percent of the company's profits in 2010/11. This acquisition has an excellent geographic and business fit with Viridor's existing operations in the Northwest of England and complements our existing recycling activities elsewhere in the U.K. The recyclate from Storm Recycling will also provide additional volumes for our international trading arm. The acquisition is expected to be earnings enhancing in its first full year."

 

Get curated news on YOUR industry.

Enter your email to receive our newsletters.

Loading...