Biffa has bought O’Brien Waste Recycling Solutions (O’Brien WRS) for £36m in a deal which is part of the company’s strategy of boosting growth through acquisition.
The takeover of the waste manager, which says it is the largest in the north-east of England, was announced on the Stock Exchange.
Biffa said it paid £35.2m from its existing cash and debt facilities, with a further £900,000 payable subject to the award of an identified new contract and recoveries from historical bad debt.
O’Brien WRS, which has 190 employees, generated an annual revenue of £34.4m, operating profit of £5.3m and had gross assets of £15.3m.
The collection business, which has 3,600 customers and revenues of £20.7m, will be incorporated into Biffa’s existing industrial & commercial collection business.
The recycling and waste treatment operation at three locations will join Biffa’s resource recovery and treatment divisions.
2000 Biffa 2016 Ian Wakelin
Biffa chief executive Ian Wakelin (pictured) said: “The acquisition is further evidence of our ongoing strategy of combining organic growth with value-creating acquisitions which enhance our network, capabilities and service offering.
“This acquisition significantly strengthens our market presence in the north-east of England. We welcome the employees of O’Brien WRS to Biffa and we look forward to working together to provide a great service to our customers.”
Nathan O’Brien, managing director of O’Brien WRS, added: “The opportunity to join Biffa was a natural choice for our business due to Biffa’s scale, UK-wide network and complementary capabilities. Being part of a bigger group creates many exciting opportunities for the combined businesses.
”I want to thank each and every one of our staff for their attitude, commitment and the energy they bring to the business every day. I am proud of what we have achieved. I have said this many times before: every single person matters in this business, every single day.”