Biffa plc Acquisition (1612K)
July 05 2017 - 2:00AM
UK Regulatory
TIDMBIFF
RNS Number : 1612K
Biffa plc
05 July 2017
5 July 2017
This announcement contains inside information.
Biffa plc
Biffa Acquires O'Brien Waste Recycling Solutions Holdings
Limited
Biffa plc ('Biffa', 'the Group' or 'the Company'), a leading UK
integrated waste management company, announces that it has
completed the acquisition of O'Brien Waste Recycling Solutions
Holdings Limited ('O'Brien WRS'), a leading provider of waste and
recycling solutions in the North East of England.
O'Brien WRS has been acquired for a cash consideration of
GBP35.2 million, funded from Biffa's existing cash and debt
facilities, with a further contingent consideration of up to GBP0.9
million payable subject to the satisfaction of certain
conditions[i]. The acquisition is expected to be immediately
earnings enhancing for the Group.
As at 30 April 2017, O'Brien WRS generated annual revenues of
cGBP34.4 million, EBITDA of cGBP6.6 million, operating profit of
cGBP5.3 million and had gross assets of cGBP15.3 million[ii], and
has c190 employees.
O'Brien WRS is highly complementary to Biffa's existing
business. Its collection business, which serves c3,600 customers
and generates revenues of cGBP20.7 million, will be incorporated
into Biffa's existing Industrial & Commercial ('I&C')
collection business, enabling the combined business to operate more
efficiently and enhance its customer service offering.
In addition the acquisition brings a substantial recycling and
waste treatment operation across 3 locations which serves both
commercial and local authority customers and which will
significantly strengthen Biffa's infrastructure in the region.
These facilities will be incorporated into Biffa's Resource
Recovery and Treatment (RR&T) divisions.
Ian Wakelin, Chief Executive of Biffa, 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.
"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 Waste Recycling
Solutions, 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."
ENQUIRIES:
Ian Wakelin, Chief Executive Officer
Michael Topham, Chief Financial Officer
ir@biffa.co.uk
Instinctif Partners +44 (0) 20 7457 2020
Mark Garraway +44 (0) 7771 860 938
Helen Tarbet +44 (0) 7825 609 737
James Gray +44 (0) 7583 936 031
biffa@instinctif.com
Cautionary statement regarding forward-looking statements
This announcement contains certain forward-looking statements
and unaudited financial information that are subject to the usual
risk factors and uncertainties associated with the Company's
business. Whilst the Company believes the expectations reflected
herein to be reasonable in light of the information available to
them at this time, the actual outcome may be materially different
owing to factors beyond the Company's control or within the
Company's control where, for example, the Company decides on a
change of plan or strategy. Accordingly, no reliance may be placed
on the figures contained in such forward-looking statements or
unaudited financial information.
Inside information
The information contained in this announcement is inside
information. If you have any queries on this, then please contact
Rachael Hambrook, Company Secretary (responsible for arranging the
release of this announcement) at Biffa plc Coronation Road,
Cressex, High Wycombe, Bucks HP12 3TZ on +44 (0) 1494 521221
[i] Contingent consideration is dependent on the award of an
identified new contract and recoveries from historical bad debt
[ii] The figures for revenues, EBITDA, operating profit and
gross assets of O'Brien for the year to 30 April 2017 are unaudited
but have been subjected to due diligence. The latest available
audited financial statements of the O'Brien WRS business are those
of O'Brien Waste Recycling Solutions Limited in respect of the
period to 30 April 2016, incorporating the trading results of the
O'Brien WRS business from 7 May 2015, and show revenues of GBP27.3
million, EBITDA of GBP3.5 million, operating profit of GBP2.6m and
gross assets of GBP11.4 million.
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQRAMATMBAMMPR
(END) Dow Jones Newswires
July 05, 2017 02:00 ET (06:00 GMT)
Biffa (LSE:BIFF)
Historical Stock Chart
From Apr 2024 to May 2024
Biffa (LSE:BIFF)
Historical Stock Chart
From May 2023 to May 2024