22 June 2005
Pennon Group Plc announces that its subsidiary, Viridor Waste Management Limited, has acquired Brett Waste Management Limited ("Brett Waste"), the landfill and power generation business, from Robert Brett and Sons Limited. Brett Waste had net assets at year end 31 December 2004 of £14.1m. The acquisition is in line with Pennon Group's stated strategy of expanding its waste management activities, particularly in the areas of landfill and power generation.
Brett Waste is headquartered near Canterbury and comprises: strategically located landfill sites in Kent and Essex with approximately 11m cubic metres of consented capacity; landfill gas power generation schemes totalling 6 MW capacity; and associated transfer station and collection activities. As a result of the acquisition, Viridor Waste's consented landfill capacity increases to approximately 91m cubic metres and its power generation to 58MW. The acquisition will be integrated into Viridor Waste's south east region and is expected to be earnings enhancing before goodwill in its first full year.
Commenting on the acquisition, Colin Drummond Chief Executive of Viridor Waste, said, "This acquisition fits very well with Viridor Waste's strategy of expanding its landfill and power generation businesses in key regions of the country".
For further information please contact:
Colin Drummond, Chief Executive, Viridor Waste Limited
- today (22/6/05) 07831 145157
- tomorrow (23/6/05) 01392 443004
- thereafter 01823 721400
Jo Finely, Investor Relations Manager, Pennon Group Plc, on 01392 443401
Mark Harris, Finsbury, on 0207 2513801
Viridor Waste Management is a leading provider of essential waste and recycling services in the UK. It has core competences in waste disposal by landfill, the generation of electricity from landfill gas and the operation of materials recycling facilities. It also operates waste transfer stations, civic amenity sites and composting facilities in a number of regions of the UK. It has a waste collection fleet of 270 vehicles, 6 liquid waste treatment plants, and a clinical waste incinerator.
Viridor's stated strategy is to:
- capitalise on its leading position in waste disposal by landfill;
- exploit opportunities in renewable energy generation; and
- pursue profitable opportunities arising from the UK Government's developing waste strategy.
Following this acquisition, the company has total consented landfill capacity of approximately 91m cubic metres. This capacity is located particularly in the South East, South West and North of England, and in Scotland.
Gas produced from landfill sites (landfill gas) is increasingly used to generate electricity. It is a form of renewable energy and now represents over 25 percent of the UK's total renewable energy generation. The UK Government's strategy is to increase the percentage of electricity generated from renewable sources from the current figure of below 4 percent to a target of 10 percent in 2010 and 15 percent in 2015, with an aspiration of 20 percent in 2020. To meet these targets, the UK Government has introduced premium pricing régimes, most recently Renewable Obligation Certificates ("ROC's"), to encourage all eligible forms of renewable energy including landfill gas. Following the acquisition, Viridor has approximately 58 MW of capacity of which around 50 percent is eligible for ROC's.