Reconomy focuses its business

24 Jun 2010

Reconomy has sold its integrated recycling and waste management operator Reconomy Recycling Solutions (RRS) to Viridor, part of Pennon Group plc, for a cash consideration of £23.8m.

Reconomy sells Reconomy Recycling Solutions to Viridor (Pennon Group plc)

Reconomy has sold its integrated recycling and waste management operator Reconomy Recycling Solutions (RRS) to Viridor, part of Pennon Group plc, for a cash consideration of £23.8m.  The disposal allows Reconomy to focus on its core business of providing customised outsourced waste management and recycling solutions to a wide range of customers, particularly in the house building, construction, utilities, facilities management and retail sectors.  The acquisition is in line with Pennon Group plc’s (Viridor’s parent company) stated strategy of expanding its waste management activities, particularly in the areas of recycling, waste treatment and disposal.

RRS (comprising of Basecall Limited and Oakley Waste Management Limited) is headquartered in Northamptonshire and is the leading independent operator in its sector in the South Midlands and East Anglia.

The business consists of a full range of recycling and waste management operations, including three material recycling facilities (including a showcase MRF at Earls Barton), a fleet of over 50 collection vehicles, paper, card and plastics processing, confidential destruction, and a waste transfer station.  It employs over 150 people and handles approximately 250,000 tonnes of material per annum, of which over 150,000 is recycled.

Viridor has complementary recycling, transport and disposal assets in the operating areas.  The operations will be integrated into Viridor’s south eastern region and will trade as Viridor.  The acquisition is expected to be earnings enhancing before amortisation of intangibles in the first full year.

Patrick Macdonald, Chief Executive of Reconomy, said “I am delighted that Viridor is purchasing Reconomy Recycling Solutions.  Pennon Group is a great home for RRS.  This is good news for employees, customers, suppliers and all other stakeholders in the business.  This sale, together with the recent sale of Nutrafeed, enables Reconomy to move forward with a new focus.”

Commenting on the acquisition, Mike Hellings, Managing Director of Viridor said, “The UK’s waste strategies demand ever-increasing levels of recycling.  Reconomy has an excellent track record over recent years in providing essential recycling services to businesses in their operating region.  Their innovative and professional approach will fit very well with our Viridor culture and we look forward to welcoming and working with our new colleagues.

“This acquisition fits with Viridor’s strategy of expanding its materials recycling capacity, particularly where there are synergies with existing assets.  It will further strengthen Viridor Resource Management’s position as a leading supplier of quality recyclate volumes for UK and international markets.”

Reconomy was advised by Mark Whelan of KPMG.

For further information please contact:

Patrick Macdonald, Chief Executive, Reconomy on 020 7591 4200

Dan Cooke, External Affairs Manager, Viridor on 01823 721 400

Notes to Editors:

Reconomy

Reconomy is one of the UK’s most innovative waste management and recycling businesses.  Following the sale of Reconomy Recycling Solutions and the recent sale of Nutrafeed, the business will be composed of Reconomy Solutions.  Reconomy Solutions offers a wide range of customised outsourced waste management and recycling solutions for large and small corporate customers, with a focus on the house building, construction, utilities, facilities management and retail sectors.

www.reconomy.com

Viridor

Viridor is one of the UK’s leading recycling, waste management and renewable energy companies.

Part of the FTSE 250 Pennon Group plc, Viridor provides the full range of recycling and waste services including advanced materials recycling, glass, plastics and WEEE reprocessing, composting, waste to energy, transport, collection, and safe and efficient landfill disposal.  The company recycles over 2 million tonnes of material each year, generates 101 megawatts of renewable energy and handles a total of over 10 million tonnes of waste and recyclates.

All sites and services are operated under the company’s business management system incorporating ISO14001 (Environmental Management), ISO9001 (Quality Management) and OHSAS 18001 (Health and Safety) standards, and formally accredited by BSI.  These are the highest recognised international standards, ensuring continuous improvement in these key areas and providing assurance to customers and communities alike.

Viridor is a two times recent winner at the DEFRA-sponsored Awards for Excellence in Waste and Recycling.  It is a ‘beacon status company’ for its partnership working with waste and recycling services beacon councils (the Beacon scheme recognises excellence and innovation in local government).

www.viridor.co.uk