The transaction marks another significant step forward in Biffa’s growth strategy as a leading enabler of the UK circular economy and represents a unique opportunity to acquire a nationwide Collections and Recycling portfolio.
On completion, the deal will see Biffa acquire Viridor’s network of 15 Industrial and Commercial (I&C) depots for business waste, significantly expanding its own market leading low carbon Collections business and bringing an additional 21,000 customers into the Group’s nationwide portfolio. Additionally, this improves the Group’s position to meet upcoming regulatory changes to collections services including compulsory recycling and food waste which is underpinned by evolving Government policy.
The transaction will also enable Biffa to further extend its capabilities across its Specialist Services and Resources & Energy operations, adding 8 further recycling assets and increasing its capabilities in wastewater collection and treatment. It also strengthens Biffa’s position as one of the largest recyclers of post-consumer materials in the UK and reinforces the Group’s leading position in closed-loop recycling, securing a long-term supply of c.22,000 tonnes of plastics feedstock per annum for its world-leading Polymers business, in line with the Group’s strategy to quadruple plastic recycling capacity by 2030.
The acquisition also demonstrates Biffa’s commitment to its sustainability strategy, ‘Resourceful Responsible’, which the Group launched in March 2020, by further improving Biffa’s capability to support its customers increase their recycling rates through enhanced flexibility of coverage and service. Increased route density across its Collections fleet will also help to reduce fleet carbon emissions in line with the Group’s commitments.
Michael Topham, Chief Executive of Biffa plc commented:
“The acquisition of Viridor’s Collections business, and certain Recycling assets, is a compelling opportunity for Biffa. The addition of Viridor’s £85m collections revenues builds on the Group’s strong track record as the leading market consolidator in the highly fragmented I&C collections market. In addition, the acquired recycling and treatment assets broadens our coverage and control of materials, strengthening Biffa’s position as one of the largest recyclers of post-consumer materials in UK.
“When combined with the other investments we have made over the past year across waste reduction, recycling and energy recovery, we have positioned the Group as a leading enabler of the UK circular economy, ready to tackle the UK’s waste challenge. We look forward to welcoming our new colleagues from Viridor to Biffa in due course.”