Viridor Makes Acquisition

Viridor Waste Management Ltd. has acquired Pearsons Group Holding Ltd., a recycling company headquartered in East Anglia, U.K., for £16 million (US$24.251 million). Viridor is a subsidiary of the British company Pennon Group Plc.
According to Pennon, the acquisition is in line with the company’s strategy of expanding its waste management activities, particularly in the recycling sector.

Pearsons operates materials reclamation and associated facilities in Norfolk, U.K. The facility processes around 50,000 metric tons per year of recyclables per year. The facility recently upgraded its facilities that will allow the facility to handle as much as 139,000 metric tons of material per year.

Commenting on the acquisition, Colin Drummond, Viridor’s CEO, says, "The U.K.'s waste strategy demands ever increasing levels of recycling. This is a fast growing part of Viridor's business, which accounted for 16 percent of the company's profits in 2009/2010. This acquisition has an excellent geographic and business fit with Viridor's existing operations in the East of England (including the 'Reconomy' business acquired in June 2010). The acquisition will permit significant cost saving and volume increase and is expected to be earnings enhancing before amortization of intangibles in its first full year."