Pennon Subsidiary Acquires UK Recycler

Viridor Waste Management Ltd.,  a subsidiary of Pennon Group Plc, has acquired the recycling company Community Waste Recycling Ltd., based in Milton Keynes, U.K., for £15.75 million (US$27.5 million). According to Pennon, the acquisition is in line with the Viridor’s strategy of expanding its U.K. waste management activities, especially in the recycling sector. 
 

Community Waste, which specializes in paper recycling services, operates a MRF in Milton Keynes that processes recyclables from local municipalities; a MRF in Enstone, Oxfordshire, U.K, which processes both municipal and commercially generated recyclables; and a brokerage division operating in London. The company also has a number of medium- and long-term municipal contracts. The company currently processes around 90,000 metric tons of recyclables per year.
 

Colin Drummond, Viridor’s CEO, says, “The U.K.’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 31 percent of the company’s profit contribution in the first half of financial year 2011/2012. Community Waste’s operations fit well with our existing operations and strategy in the south east, and also provide additional volumes for our international trading arm.”
 

Graham Warren, Viridor’s south east regional director, says, “There is a vital need to continue delivering higher recycling and resource management levels across the U.K. Community Waste Recycling has an excellent track record in providing essential recycling services to businesses and councils in its operating areas.”