Shanks Completes Sale Of Solid Waste Business To Biffa For £9.5m

03-01-14(3)picShanks Group has sold its UK solid waste business to Biffa for £9.5m, it was announced today (3 Jan 2014).

Shanks Group plc announced in October 2013 that it had signed a binding agreement to sell the majority of its UK solid waste business – which collects, sorts and processes commercial and industrial waste in the UK – to Biffa.

Shanks also announced it was to exit its remaining UK solid waste business, but will retain its profitable Elstow facility (Elstow), which serves municipal customers in Bedfordshire.

Expected net cash proceeds for Shanks are approximately £14m, with £8m from the disposal assets and a further £6m from the sale of Blochairn and Kettering.

The company says the move delivers on Shanks’ strategy of focusing on markets where it has a sustainable competitive advantage and can deliver attractive returns.

Peter Dilnot, Shanks – “These transactions 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 our UK operations on our growing UK Municipal and Organics businesses”

Following the transactions, the Group’s UK operations will focus on its profitable and growing UK Municipal business, which provides recycling and waste management services to local authorities in the UK, and is underpinned by long-term contracts.

Commenting, Peter Dilnot, group chief executive of Shanks, had said previously: “These transactions 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 our UK operations on our growing UK Municipal and Organics businesses.

“Shanks is well positioned 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.”

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