Veolia Environmental Services is to buy Cleanaway UK from current owner Brambles for £595 million.
Cleanaway UK has a turnover of £494 million and is a major operator in England and Wales in municipal and industrial waste collection and integrated waste management services, with about 2,000 vehicles, four landfill sites and a network of service centres. It also has a high-temperature hazardous waste incinerator and two advanced materials recycling facilities (MRFs) in Greenwich and Rainham.
Veolia Environmental Services, the waste management arm of Veolia Environnement, had revenue of £500 million in 2005.
The move will double the size of Veolia Environmental Services’ commercial dry waste business, add new services and contracts, enhance its geographic coverage and route density and complement its existing portfolio of recycling, treatment and disposal facilities.
Veolia Environnement chairman and chief executive officer Henri Proglio said: “The acquisition reinforces our position in the consolidating and fast-growing UK waste sector. It will allow us to accelerate our organic growth in the PFI and industrial sectors through an additional commercial network as well as strengthened access to local authorities and major industrial companies.”
Brambles chief executive officer David Turner said “the sustained improvement” in Cleanaway UK’s performance this year had led to the attractive price and clean exit.
Veolia has assumed responsibility for the defined benefit pension funds of Cleanaway UK, which employs more than 7,500 people.
The transaction is still subject to merger approval by the EU competition authorities.