Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of MRW, please enable cookies in your browser

We'll assume we have your consent to use cookies, so you won't need to log in each time you visit our site.
Learn more

Biffa continues ‘growth trajectory’ with C&I deal

The acquisition of Shanks’ commercial and industrial (C&I) division will allow Biffa to channel waste volumes into its revamped C&I collection infrastructure, Biffa’s chief executive told MRW.

Ian Wakelin

Ian Wakelin (left) said that since a debt restructuring operation that Biffa concluded in January 2013, the company has been working to reinforce its C&I system.

Buying Shanks’ C&I business was the next step to increase the amount of waste processed through the system and would increase profitability, he added.

Wakelin estimated that Biffa’s C&I business would grow by some 12.5% as a result of the £9.5m deal, which he described as a “quite big transaction” achieved at a “very fine” price.

He was confident that Shanks’ loss-making division would return to profitability in Biffa’s hands because it would be integrated in a larger and more robust infrastructure.

“Their facilities overlap ours. You can create synergies and opportunities to save costs and improve efficiency as a result of putting the two businesses together,” said Wakelin.

Biffa acquired most of Shanks’ C&I facilities. MRFs in Blochairn, Glasgow, and Kettering, Northamptonshire, were not included in the deal because their locations were not strategically interesting for Biffa, according to Wakelin.

He added that after challenging operating conditions last year, the C&I market was on its way to recovery and offered growth opportunities.

“Volumes have now stabilised. We have improved efficiency in our business so it is now more profitable than it was. This acquisition enables us to continue our growth trajectory,” he said.

The expansion of C&I activities, which constituted already 50% of the company’s operations, will not result in a reduction of Biffa’s presence in other sectors, such as municipal, landfill, or energy from waste, assured Wakelin.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.