5 December 2007
Pennon Group Expands its Waste Management Business
Pennon Group Plc announces that its subsidiary, Viridor Waste Management Limited, has acquired Grosvenor Waste Management Ltd ('Grosvenor'), a leading UK materials recycling company for a cash consideration of £79.5m (plus debt of £1.5m). The acquisition is in line with the Group's strategy of expanding its waste management activities.
Grosvenor is headquartered in Crayford, Kent. It comprises a Materials Recycling Facility (MRF) at Crayford which is the largest in the UK and one of the most technologically advanced; a MRF operated on behalf of Peterborough City Council; associated industrial and commercial collection activities; and an extensive recyclate sales network both in the UK and overseas. It handles approximately 500,000 tonnes of material per annum.
Commenting on the acquisition, Colin Drummond, Chief Executive of Viridor said, "The UK's waste strategy demands ever increasing levels of recycling. Grosvenor has an excellent track record in leading the way in the recycling market and is well placed to capitalise on this opportunity. The acquisition has an excellent geographic and business fit with Viridor's existing operations and is expected to be earnings enhancing before amortisation of intangibles in its first full year."
For further information please contact:
Colin Drummond, Chief Executive, Viridor Limited on 01823 721435 or 07831 145157
Jo Finely, Investor Relations Manager, Pennon Group on 07785 904763
5 December 2007