Biffa plc has announced the acquisition of North East based O’Brien Waste Recycling Solutions Holdings Limited.
O’Brien WRS has been acquired for a cash consideration of £35.2m, funded from Biffa’s existing cash and debt facilities, with a further contingent consideration of up to £0.9m payable subject to the satisfaction of certain conditions.
O’Brien WRS collection business, which serves c3,600 customers and generates revenues of c£20.7m, will be incorporated into Biffa’s existing Industrial & Commercial (‘I&C’) collection business, enabling the combined business to operate more efficiently and enhance its customer service offering.
“This acquisition significantly strengthens our market presence in the North East of England. We welcome the employees of O’Brien WRS to Biffa and we look forward to working together to provide a great service to our customers.”
In addition the acquisition brings a substantial recycling and waste treatment operation across 3 locations which serves both commercial and local authority customers and which will significantly strengthen Biffa’s infrastructure in the region, it says. These facilities will be incorporated into Biffa’s Resource Recovery and Treatment (RR&T) divisions.
Ian Wakelin, Chief Executive of Biffa, said: “The acquisition of O’Brien WRS is further evidence of our ongoing strategy of combining organic growth with value-creating acquisitions which enhance our network, capabilities and service offering.
“As one of the UK’s largest waste management companies, Biffa is a natural consolidator, with the scale, reputation and expertise to grow and build upon our market leading positions.
“This acquisition significantly strengthens our market presence in the North East of England. We welcome the employees of O’Brien WRS to Biffa and we look forward to working together to provide a great service to our customers.”
Nathan O’Brien, Managing Director of O’Brien Waste Recycling Solutions, commented: “O’Brien WRS’ wide range of recycling solutions serve both commercial and local authority customers and have driven continuous, successful growth.
“The opportunity to join Biffa was a natural choice for our business due to Biffa’s scale, UK-wide network and complementary capabilities. Being part of a bigger group creates many exciting opportunities for the combined businesses.”
The acquisition is expected to be immediately earnings enhancing for the Group.
As at 30 April 2017, O’Brien WRS generated annual revenues of c£34.4m, EBITDA of c£6.6m, operating profit of c£5.3m and had gross assets of c£15.3m, and has c190 employees.