Viridor buys Storm Recycling
Winsford-based cardboard and plastics recycling business Storm Recycling has been sold to Pennon Group's subsidiary Viridor Waste Management for a cash consideration of £1.7m.
In an announcement on the London Stock Exchange on Tuesday morning, Pennon Group said the acquisition is in line with the group's strategy of expanding its waste management activities, particularly in the recycling sector.
Colin Drummond, chief executive of Viridor, said: "The UK's waste strategy demands ever increasing levels of recycling whilst 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% of the company's profits in 2010/11.
"This acquisition has an excellent geographic and business fit with Viridor's existing operations in the North West of England and complements our existing recycling activities elsewhere in the UK. 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."
Storm Recycling handles around 20,000 to 25,000 tonnes of cardboard and plastic a year at a recycling depot off junction 18 of the M6 motorway in Cheshire.
Storm Recycling will be integrated into Viridor's northern region, alongside recent acquisitions Swinnerton Environmental and Adapt Recycling. The company's 34 staff will be integrated into Viridor's northern region.
The acquisition will become Viridor's first operational facility within the Cheshire area. The company currently services customers within the area through facilities operating in St Helens and at Trafford Park in Manchester.
Viridor is also the provisional preferred bidder for the joint household residual waste contract between the unitary authorities of Cheshire East and Cheshire West & Chester councils.
