Pennon beefs up waste recycling business

7th Feb 2011 07:38

Water group Pennon's subsidiary Viridor Waste Management has acquired a materials recycling company based in Somerset.Viridor is acquiring Martock Waste Paper from the owners on a debt free basis for £7.4m in cash.The acquired company comprises a recycling facility and associated collection activities based in Martock, Somerset, between Taunton and Yeovil. It handles around 50,000 tonnes of paper and other recycled material per annum.The acquisition is expected to be earnings enhancing before amortisation of intangibles in its first full year."Recycling is a fast growing part of Viridor's business and accounted for around 26% of the company's profits in the first half of 2010/11," notes Viridor's chief executive, Colin Drummond. "This acquisition has an excellent geographic and business fit with Viridor's existing operations in Somerset and provides additional volumes for our international trading arm," Drummond added.