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Pennon Group PLC (PNN)

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Friday 14 January, 2011

Pennon Group PLC

Acquisition

RNS Number : 5276Z
Pennon Group PLC
14 January 2011
 

 

Pennon Group Expands its Recycling Business in Greater Manchester

 

Pennon Group Plc announces that its subsidiary Viridor Waste Management Limited ('Viridor') has acquired Swinnerton Environmental Limited, an independent integrated recycling and waste management operator based in Bury for a cash consideration of £1.8m. The acquisition is in line with Viridor's parent company, Pennon Group's, stated strategy of expanding its waste management activities, particularly in the areas of recycling, waste treatment and disposal.

 

Swinnerton Environmental Limited predominantly processes paper and plastics for recycling. With over 60 years experience in the industry, it currently employs 30 people and recycles approximately 30,000 tonnes of material per annum.

 

The business will be immediately integrated into existing commercial recycling facilities within the Manchester area and will operate within Viridor's Northern region. 

 

This acquisition follows on from the acquisition of Adapt Recycling Limited, also based in Bury, for £0.7m on 17 December 2010. Adapt employs 20 people and processes around 25,000 tonnes of plastics, cans, glass, and paper per annum. This business is also being integrated into Viridor's existing operations in the Manchester area.

 

Colin Drummond, Viridor Chief Executive said: "The UK's waste strategy demands ever increasing levels of recycling.  This is a fast growing part of Viridor's business which accounted for 26% of the Company's profits in the first half of 2010/11.  These acquisitions have an excellent geographic and business fit with Viridor's existing operations in Greater Manchester.  The acquisitions are expected to be earnings enhancing before amortisation of intangibles in their first full year."

 

For further enquiries please contact:

 

Colin Drummond, Chief Executive, Viridor Limited on 01823 721435

 

Jo Finely, Pennon, Investor Relations Manager, on 01392 443401

 

Sally Hogan, Finsbury, on 020 7251 3801

 

www.pennon-group.co.uk

 

14 January 2011


This information is provided by RNS
The company news service from the London Stock Exchange
 
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