[vimeo 76318172 w=472]Shanks Group plc has today (15 Oct) announced that it has 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.
In addition, Shanks will exit its remaining UK solid waste business, with processes underway to sell its Blochairn and Kettering materials recycling facilities. Shanks will retain its profitable Elstow facility (Elstow), which serves municipal customers in Bedfordshire.
Commenting, Peter Dilnot, group chief executive of Shanks, said: “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.
Peter Dilnot, group chief executive of Shanks – “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”
“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.”
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.
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.
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.