Viridor Continues Expansion Run

Viridor has acquired the U.K.-based recycling company Martock Waste Paper Ltd. for £7.4 million (US$11.9 million). The acquisition follows an announced plan by Viridor’s parent company, Pennon Group, to expand its recycling business via acquisitions throughout the United Kingdom.

Martock, based in Martock, U.K., handles around 50,000 metric tons of recyclables per year. The company was established 25 years ago.

In a release announcing the acquisition, Colin Drummond, Viridor’s chief executive, says, “The U.K.’s waste strategies demand ever-increasing levels of recycling while the world has an increasing demand for raw materials, including recyclables. Recycling is an important and fast growing part of Viridor’s business and accounted for more than a quarter of the company’s profits in the first half of 2010/11. This acquisition has an excellent geographic and business fit with Viridor’s existing operations in the South West and provides additional volumes for our U.K. and international recyclables trading arm, Viridor Resource Management.”

Graham Warren, regional director of Viridor South West, adds, “Viridor has again shown its commitment to recycling in the South West region. The ever-increasing levels of recycling and landfill diversion being demanded by our customers mean that investment in key recycling operations is crucial. I look forward to welcoming our new colleagues from Martock Waste Paper Ltd, and working together to deliver high quality recycling services to customers across the region.”

Richard Bowers, managing director of Martock Waste Paper, says “I am delighted that Viridor has been able to secure the acquisition of Martock Waste Paper. This is good news for employees, customers, suppliers and all other stakeholders in the business, and will allow the business to develop.”

Over the past year Viridor has made a number of acquisitions of independent recycling operations in the United Kingdom, including Swinnerton Environmental Ltd., Adapt Recycling Ltd., Pearsons Group Holding Ltd. and Reconomy Recycling Solutions Ltd.