17 August 2018
(“Biffa” or “the Company”)
Acquisition of Weir Waste Services Limited for £16.2m
Biffa, a leading UK integrated waste management company, announces that it has today acquired Weir Waste Services Limited (‘WWS’ or ‘Weir Waste’), a leading provider of waste and recycling solutions in Birmingham and the West Midlands region.
WWS has been acquired for a consideration plus debt taken on of c. £16.2 million, funded from Biffa’s existing cash and debt facilities.
For the year ending 31st May 2017, WWS generated revenues of £16.1 million, had a reported EBITDA of £2.2 million, operating profit of £1.1 million and gross assets of £14.5 million, and has a workforce of c.120 people.
WWS is highly complementary to Biffa’s existing business, combining a commercial collection business which serves c. 1,600 customers, and operates a frontline fleet of c. 45 vehicles and a substantial recycling and waste treatment operation from a seven-acre freehold site at a key location in Birmingham.
The business will be incorporated into Biffa’s Industrial & Commercial division, enabling the combined business to broaden its customer offering throughout Birmingham and the West Midlands and to deliver operational and procurement benefits. The addition of WWS’s infrastructure to Biffa will further enhance its capabilities in the region.
Biffa announces a further 3 acquisitions in the current financial year
Biffa also announces 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, comprising: 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.
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.
We welcome the staff and customers of these businesses to Biffa.”
Ian Wakelin, Chief Executive Officer
Michael Topham, Chief Financial Officer
Instinctif Partners +44 (0) 20 7457 2020
Mark Garraway +44 (0) 7771 860 938
Helen Tarbet +44 (0) 7825 609 737
James Gray +44 (0) 7583 936 031
Cautionary statement regarding forward-looking statements
This announcement contains certain forward-looking statements and unaudited financial information that are subject to the usual risk factors and uncertainties associated with the Company’s business. Whilst the Company believes the expectations reflected herein to be reasonable in light of the information available to them at this time, the actual outcome may be materially different owing to factors beyond the Company’s control or within the Company’s control where, for example, the Company decides on a change of plan or strategy. Accordingly, no reliance may be placed on the figures contained in such forward-looking statements or unaudited financial information.
Biffa is a leading UK-based integrated waste management business. The Group operates across the breadth of the waste management value chain, including the collection, treatment, processing and disposal of waste and recyclable materials, as well as related work in the production and sale of energy derived from waste and the sale of recovered commodities such as paper, glass, metals and plastic. Biffa’s customer base for these services includes local authorities (which includes the collection of waste from households), large corporates and SMEs, and purchasers of end-product commodities and energy. The Group’s services are organised across four operating divisions: Industrial & Commercial; Municipal; Resource Recovery & Treatment (RR&T); and Energy. In FY 2018, the Group’s total revenue was £1,076.7 million and its Underlying EBITDA was £150.0 million. Biffa was admitted to trading on the London Stock Exchange’s main market for listed securities in October 2016 under the ticker “BIFF”.
For more information visit www.biffa.co.uk