24 June 2010
Pennon Group Expands its Waste Management Business
Pennon Group PLC announces that its subsidiary, Viridor Waste Management Limited, has acquired Reconomy Recycling Solutions Ltd (Reconomy), a leading UK materials recycling company for a cash consideration of £23.8m on a debt free basis. The acquisition is in line with the Group's strategy of expanding its waste management activities, particularly in the recycling sector.
Reconomy operates in East Anglia and the South Midlands, and comprises Materials Recycling Facilities in Wellingborough near Northampton; Soham, Cambridgeshire; and Corby, Northants; along with associated collection and transfer activities. It produces approximately 150,000 tonnes of recycled 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. This is a fast growing part of Viridor's business now accounting for around 15% of the Company's profits. This acquisition has an excellent geographic and business fit with Viridor's existing operations in the East of England and is expected to be earnings enhancing before amortisation of intangibles in its first full year."
Further information on Pennon Group and Viridor can be found on the Group's website, www.pennon-group.co.uk.
A conference call for analysts and investors on this announcement will be hosted by Colin Drummond, Chief Executive of Viridor, at 2.00pm today.
Dial-in number: +44 (0)203 003 2666
Conference password: Viridor
For media enquiries please contact:
Katie Johnson, Finsbury on 020 7251 3801