04 November 2010
ennon Group Plc announces that its subsidiary, Viridor Waste Management Limited, has acquired Pearsons Group Holdings Limited, a leading materials recycling company in East Anglia, for a cash sum of £14.9m together with debt of £1.1m from Mr P Pearson and Mr J Pearson. The acquisition is in line with the Group's strategy of expanding its waste management activities, particularly in the recycling sector.
Pearsons operates materials reclamation and associated facilities at Thetford in Norfolk. Its total input volumes are around 50,000 tonnes per annum and it has recently upgraded its facilities to a combined licensed capacity of 139,000 tonnes.
Commenting on the acquisition, Colin Drummond, Chief Executive of Viridor said, "The UK's waste strategy demands ever increasing levels of recycling. This is a fast growing part of Viridor's business which accounted for 16% of the Company's profits in 2009/10. 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 amortisation of intangibles in its first full year."
A conference call for analysts and investors on this announcement will be hosted by Colin Drummond, Chief Executive of Viridor, at 9.00am tomorrow (Friday, 5 November).
Dial-in number: +44 (0) 20 3003 2666;
Conference password: Viridor
For further enquiries please contact:
Katie Johnson, Finsbury, on 020 7251 3801
Further information on Pennon Group and Viridor can be found on the Group's website, www.pennon-group.co.uk.