Waste management firm Biffa has announced the acquisition of Specialist Waste Recycling (SWRNewstar), from a group of investors for around £25.8 million.
The acquisition was funded by Biffa’s existing cash and debt facilities.
For the year ending 31 December 2018, SWRNewstar generated a revenue of £40.1 million, an underlying EBITDA run rate of £3.5 million, and an underlying operating profit of £3.5 million. It also had gross assets of £15.7 million.
The firm also brings with it a workforce of around 90 people.
SWRNewstar’s business model is to provide waste and recycling solutions to its customers, with the physical delivery of the service provided by a network of sub-contractors.
Biffa is a sub-contractor to SWRNewstar, servicing around 11% of its customers’ requirements.
This acquisition will provide the opportunity to increase the proportion of work serviced by Biffa’s collection and processing network, as well expanding routes and market, said the firm.
Biffa chief executive Michael Topham said: “The acquisition of SWRNewstar represents a compelling opportunity for Biffa and provides further evidence of our ability to identify and execute cash flow enhancing and earnings accretive acquisitions. Bringing together SWRNewstar with Biffa’s leading Industrial & Commercial business will strengthen our offering while enabling us to profitably leverage our national network. We welcome the staff and customers of SWRNewstar to Biffa.”