25 March 2008
PENNON GROUP EXPANDS ITS WASTE MANAGEMENT BUSINESS
Pennon Group Plc announces that its subsidiary, Viridor Waste Management Limited, has acquired Shore Recycling Ltd ('Shore'), a leading UK waste electrical and electronic equipment ('WEEE') recycling company, for a cash consideration of £23m (debt free) from Messrs S M Howie, M A Todd and T H M Liddell. The acquisition is in line with the Group's strategy of expanding its waste management activities.
Shore is headquartered in Perth, Scotland, and has recycling facilities in Perth, Manchester and St Helens, along with an associated collection fleet. With the UK's recent implementation of the European Union's WEEE Directive, WEEE recycling is expected to grow fast. The company handles a full range of WEEE and benefits from modern purpose built recycling equipment. It has an excellent fit with Viridor's existing operations in the North West of England and in Scotland.
Commenting on the acquisition, Colin Drummond, Chief Executive of Viridor said, "The UK's waste strategy demands ever increasing levels of recycling, particularly now in the area of waste electrical and electronic equipment. Shore has an excellent track record in leading the way in this market in the North of the UK 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
Finely, Investor Relations Manager, Pennon Group on 07785 904763
Harris or Sally Hogan, Finsbury on 020 7251 3801
25 March 2008