The company, which served Greater Manchester and the north of England, was recently taken into administration.
Based at Trafford Park, Manchester, it had a turnover of around £4 million. Viridor is to take on 22 of its employees.
Viridor northern regional director Mark Burrows Smith said: The acquisition of this quality paper collection and recycling business will be an excellent addition to our existing operations in the north. There are obvious synergies with our services in Greater Manchester. We welcome our new colleagues and look forward to delivering these essential recycling services to new and existing customers across the region.