Biffa to buy Viridor assets for £126m

UK waste management company Biffa has agreed to buy the collections arm and certain recycling assets of Somersetbased Viridor for £126million.

The deal will see Biffa acquire Viridor’s network of 15 industrial and commercial depots, significantly expanding its own low-carbon collections business, and will bring an extra 21,000 customers into the company’s portfolio.

It is not clear how many staff will be transferred as part of the deal, or whether any jobs have been lost. When asked by BusinessLive, Biffa did not respond.

The company currently employs more than 8,000 staff who collect, recycle and recover waste from 95% of UK postcodes.

According to the company, the transaction marks a “significant step” in its growth strategy and will improve the group’s position to meet upcoming regulatory changes to collections services, including compulsory recycling and food waste.

It said the deal would also enable the business to “extend its capabilities” across its specialist services and resources and energy operations, adding eight more recycling assets and boosting its ability to deal with wastewater collection and treatment.

Michael Topham, chief executive of Biffa, said the acquisition was a “compelling opportunity” .

“The addition of Viridor’s £85million collections revenues builds on the group’s strong track record as the leading market consolidator in the highly fragmented industrial and commercial collections market,” he said. “The acquired recycling and treatment assets broadens our coverage and control of materials, strengthening Biffa’s position as one of the largest recyclers of post-consumer materials in UK.”