UK recycling and waste management firm Biffa has announced that it has bought the UK solid waste business of Shanks for £9.5 million.
Subject to regulatory approval, the transaction will be completed by the end of the year.
As a result of the increased volume, this will enable Biffa to consolidate more waste into recycling and energy from waste facilities, leading to growth in its energy and processing operations.
Biffa chief executive Ian Wakelin said: “This acquisition will enable us to leverage our national infrastructure, grow our market share and enhance our leading industrial and commercial services.
“It is a progressive move for Biffa in line with industry trends towards consolidation to match waste volume levels. Biffa has a strong platform for growth based on its reputation for excellent customer service and its infrastructure.
“We are pleased to continue to invest in the business and enhance our position at the forefront of the evolving waste management industry.”
As a result of the transaction, materials recycling facilities owned by Shanks at Blochairn in Scotland and Kettering in England will be closed.
Shanks will retain its profitable Elstow facility which serves municipal customers in Bedfordshire.
Shanks chief executive Peter Dilnot said: “These transactions can deliver on our strategy of focusing on markets where we have sustainable competitive advantage and can generate attractive returns.
“We are exiting a market where we are sub-scale and not positioned to win, and focusing on our UK operations on our growing municipal and organics businesses.
“Shanks is well position for future growth, with a portfolio of strong businesses in attractive target markets. In addition to our growing UK municipal business, we are market leaders in Benelux solid waste, have a differentiated business in European hazardous waste, and an established leadership position in organics.
“The combination of these businesses provides a strong platform for delivering profitable growth and generating attractive returns.
“On behalf of the board, I would like to thank all employees in the UK solid waste business for their contribution and commitment to the group.”