Biffa has announced the acquisition of Weir Waste Services Limited (WWS) for ‘a consideration plus debt taken on of c. £16.2 million’. The purchase has been funded from Biffa’s existing cash and debt facilities.
WWS, which operates in Birmingham and the West Midlands region, generated revenues of £16.1 million for the year ending 31st May 2017. It reported EBITDA of £2.2 million, operating profit of £1.1 million and gross assets of £14.5 million, and has a workforce of around 120 people.
It serves some 1,600 customers, operates a frontline fleet of around 45 vehicles and has a 7 acre recycling and waste treatment site, which Biffa considers to be at a key location in Birmingham.
The business will be incorporated into Biffa’s Industrial & Commercial division where it is intended to deliver operational and procurement benefits while enhancing regional capabilities.
Biffa has also announced that it has agreed a further three acquisitions in the current financial year for a total consideration plus debt taken on of £3.9 million, adding annual revenue of c.£4.9 million. These comprise:
- the trade and assets of H&A Recycling Limited (subject to satisfaction of certain conditions), a commercial waste collection and recycling business in Cornwall
- the trade and assets of Bisset Waste Management Limited, a commercial waste collection business in Scotland
- and certain trade and assets of Vecta Group Limited, a waste collection business in East London.
All three acquisitions will also be incorporated into Biffa’s Industrial & Commercial division.
Commenting, Michael Topham, chief financial officer and CEO – designate of Biffa, said:
“The acquisitions we have announced today demonstrate our ongoing ability to identify and execute value accretive acquisitions across the UK.
“The Weir Waste business significantly strengthens our presence and customer offer in Birmingham and the Midlands while the other acquisitions further enhance our platform in their respective markets.”