Viridor has acquired Martock Waste Paper Limited, a leading materials recycling company head-quartered in Somerset, for a cash consideration of £7.4m on a debt free basis. The acquisition is in line with its parent company, Pennon Group’s strategy of expanding its waste management activities, particularly in the recycling sector.
The acquired company comprises a recycling facility and associated collection activities based in Martock, Somerset, between Taunton and Yeovil. It handles around 50,000 tonnes of paper and other recycled material per annum. The company was established in 1976.
Commenting on the acquisition, Colin Drummond, Chief Executive of Viridor said, “The UK’s waste strategies demand ever increasing levels of recycling whilst the world has an increasing demand for raw materials including recyclate. Recycling is an important and fast growing part of Viridor’s business and accounted for more than a quarter of the Company’s profits in the first half of 2010/11. This acquisition has an excellent geographic and business fit with Viridor’s existing operations in the South West and provides additional volumes for our UK and international recyclates trading arm, Viridor Resource Management.”
Graham Warren, Regional Director of Viridor South West, added: “Viridor has again shown its commitment to recycling in the South West region. The ever-increasing levels of recycling and landfill diversion being demanded by our customers mean that investment in key recycling operations is crucial. I look forward to welcoming our new colleagues from Martock Waste Paper Ltd, and working together to deliver high quality recycling services to customers across the region.”
Richard Bowers, Managing Director of Martock Waste Paper Ltd, said “I am delighted that Viridor has been able to secure the acquisition of Martock Waste Paper. This is good news for employees, customers, suppliers and all other stakeholders in the business, and will allow the business to develop.”