Biffa has bought Cory Environmental Group’s municipal and trade business for £13.5m.
As part of its acquisition of Cory Environmental Municipal Services (CEMS), which employs around 800 people, Biffa will take on local authority collection contracts in Cornwall, Lincoln, Rutland and Tunbridge Wells.
The Cornwall contract is one of the largest outsourced council contracts in the UK, covering street and beach cleaning as well as household waste and recycling services.
Biffa will also take over commercial waste collection and recycling services to an anticipated 7,000 customers, mainly in the south-west and south-east. Last year, CEMS reported total revenues of around £34m.
600 Ian Wakelin Biffa
Biffa chief executive Ian Wakelin (pictured right) said: “This is an important acquisition for us. We believe that it will significantly strengthen our positions in the UK industrial and commercial and municipal market segments, in which we already hold the number one and number two positions respectively.
“This transaction provides further proof that Biffa is a natural consolidator in the industry, with the technology, scale, reputation and expertise to grow and build on our market leading positions in the UK.
“We are delighted to welcome CEMS to Biffa.”
Cory, which was advised by Pinsent Masons and EY Corporate Finance, said its sale to Biffa was for an enterprise value of £23m, delivered as consideration of £13.5m and an additional cash release to Cory of £1.8m.
It said the sale, which attracted a “high level of interest from bidders”, was a result of a strategic review launched by Cory’s board, which concluded that the CEMS business was no longer core to the group.
Group chief executive Nicholas Pollard (pictured left) said: “This transaction follows directly from our strategic review.
“It will simplify our group structure, enabling us to invest substantially and develop our core business of providing and operating infrastructure for waste management, materials recycling, waste disposal and energy generation – in particular at our Riverside facility, one of the UK’s largest, cleanest and most efficient energy-from- waste plants.
“Biffa is a natural owner for CEMS, and we wish the business every success for the future.”
The transaction came into effect on 8 June.