PENNON GROUP FURTHER EXPANDS ITS WASTE MANAGEMENT BUSINESS
13 February 2007
VIRIDOR ACQUIRES BUSINESS IN KENT
Pennon Group Plc announces that its subsidiary, Viridor Waste Management Limited, has acquired Skipaway Holdings Limited (the holding company for three trading subsidiaries: Skipaway Limited, Allwaste Disposal Services Limited and Wastenot Recycling Limited) from Messrs J R Butler, R D Merrick, M Butler and M A Orsbourn for £14.7m. The acquisition is in line with Pennon's stated strategy of expanding its waste management activities, particularly in the areas of landfill, power generation and waste treatment.
The acquired companies are headquartered in Rochester, Kent and comprise three transfer stations with associated industrial and commercial waste collection and recycling activities operating in the Medway towns and the Faversham and Ashford areas. They handle approximately 240,000 tonnes of material per annum.
Viridor has complementary disposal, collection and recycling assets in the county. The acquisition will be integrated into Viridor Waste's south eastern region and is expected to be earnings enhancing before amortisation of intangibles in the first full year.
Commenting on the acquisition, Colin Drummond, Chief Executive of Viridor Waste said, "Skipaway has had an excellent track record over the past two decades. This acquisition fits very well with Viridor Waste's strategy of expanding its waste transfer and treatment businesses, particularly in regions such as the South East where there are synergies with existing assets."
For further information please contact:
Colin Drummond, Chief Executive, Viridor Waste, on 07831 145 157
Jo Finely, Investor Relations Manager, Pennon Group, on 01392 4434401
Sally Hogan, Finsbury, on 020 7251 3801
Notes to Editors:
Viridor Waste Management is a leading provider of essential waste and recycling services in the UK. It is owned by the Pennon Group, a major UK plc with assets of over £2.3 billion. Viridor has core competencies in materials recycling, the generation of renewable power and waste disposal by landfill. It also operates waste transfer stations, household waste recycling (civic amenity) sites, composting and mechanical/biological treatment plants and liquid waste treatment facilities in a number of regions of the UK. It has a waste collection fleet of around 470 vehicles, and a clinical waste incinerator. In total it operates over 180 facilities across the UK, processing large volumes of municipal, commercial and industrial wastes.
A Viridor/Grundon Waste Management joint venture is building a 400kt/37MW energy from waste facility at Colnbrook, west of London, which is due to open in the second half of 2008.
The company has total consented landfill capacity of approximately 91m cubic metres. This capacity is located particularly across the South, North West and East of England, and the Central Belt of Scotland.
Gas produced from landfill sites (landfill gas) is increasingly used to generate electricity. It is a form of renewable energy and now represents around 30 percent of the UK's total renewable energy generation. Viridor has approximately 70 MW of capacity of which 46 percent is eligible for Renewables Obligation Certificates (ROCs).
Viridor was the first waste management company in the UK to adopt a comprehensive environmental management system (EMS) across its entire business, gaining accreditation to ISO 14001, the highest international standard, at all its major operational centres. The company is now progressing to the adoption of an Integrated Management System accredited to ISO 9001 (Quality Management), ISO 14001 and OHSAS 18001 (Occupational Health and Safety) standards.
Viridor has a detailed corporate and social responsibility policy and the company's performance is formally assessed in Pennon Group's annual report on corporate responsibility for environmental and social issues.
13 February 2007