Construction firm Kier Group has acquired waste management firm Pure Recycling and Pure Buildings for a possible £7.1m.
The takeover will cost an initial £2m and a further £5.1m, which is contingent.
Pure Recycling and Pure Buildings own a materials recycling facility in Ettingdon, Warwickshire, which is currently being built. Once the project is completed in March 2011, it will be capable of reprocessing 25 tonnes of recyclables an hour, making it one of the largest MRFs in the UK.
Kier Group chief executive Paul Sheffield said: “We are delighted with the acquisitions which strengthen Kier’s waste management and recycling business and will leave the group well placed to take advantage of future market growth in the sector. In particular, we look forward to working closely with local authorities to help them to achieve their recycling targets.”