05 June 2003
Pennon Group announces that its subsidiary, Viridor Waste Limited, yesterday acquired the waste recycling and transfer station business, Churngold Holdings Limited, for a cash consideration of £19.7 million. The acquisition is in line with the Group's strategy of expanding its waste management activities.
Churngold has waste recycling and transfer stations along with associated collection activities in the Bristol area, Glasgow and Edinburgh. It complements Viridor Waste's existing activities in the South West of England and in Scotland. The acquisition is expected to be earnings enhancing before goodwill in the first full year, 2004/05.
Commenting on the acquisition, Colin Drummond, Chief Executive of Viridor Waste said, "This acquisition ties in well with Viridor's strategy of pursuing profitable opportunities arising from the Government's developing waste strategy. It has an excellent geographic and business fit with our existing operations."
For further information, please contact :
Colin Drummond - Chief Executive, Viridor Waste Limited on 01823 721431
Jo Finely - Investor Relations Manager, Pennon Group Plc on 07785 904763
Andrew Dowler - Financial Dynamics on 0207 831 3113