Biffa plc acquires recycling firm O'Brien WRS in £36m deal

Integrated waste management company Biffa plc has completed its acquisition of North East waste and recycling services provider O’Brien Waste Recycling Solutions Holdings Limited.

The deal, settled for a cash consideration of £35.2m, was funded through Biffa’s existing cash and debt facilities.

A further contingent consideration of up to £900k is payable subject to O’Brien WRS meeting certain conditions, including securing a new contract and recoveries from historical bad debt.

Buckinghamshire-headquartered Biffa said it expects the acquisition to be immediately earnings enhancing.

As of April 30 2017, O’Brien WRS generated an annual operating profit of around £5.3m against revenues of about £34.4m. The firm employs a 190-strong team across sites in Newcastle, Sunderland and Teesside.

The company’s collection business, which alone generates a revenue of more than £20m, will become part of Biffa’s existing Industrial & Commercial (‘I&C’) collection business.

O’Brien WRS’ recycling and waste treatment facilities will be incorporated into Biffa’s Resource Recovery and Treatment (RR&T) arms.

Biffa chief exec Ian Wakelin said: “The acquisition of O’Brien WRS is further evidence of our ongoing strategy of combining organic growth with value-creating acquisitions which enhance our network, capabilities and service offering.

“As one of the UK’s largest waste management companies, Biffa is a natural consolidator, with the scale, reputation and expertise to grow and build upon our market leading positions.”

He added: “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.”

O’Brien WRS’ managing director, Nathan O’Brien, commented: “O’Brien WRS’ wide range of recycling solutions serve both commercial and local authority customers and have driven continuous, successful growth.

“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.”

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