United Kingdom | Water group Pennon from the United Kingdom has extended its move into waste recycling through the purchase of Shore Recycling, a Scotland, United Kingdom based recycling firm involved in the handling of fridges and other electrical items.

Pennon is paying £23 million (US$ 45.8 million) in cash to the owners of Shore Recycling. The acquired company will be integrated into Pennon’s subsidiary, Viridor Waste Management Limited.

According to Shore, its total recycling capacity amounts 600,000 fridges, 600,000 cathode ray tubes and 40 000 tonnes of small WEEE each year. Headquartered in Perth, Scotland, Shore Recycling has modern recycling facilities in Perth and Manchester. The company handles a full range of waste electrical and electronic equipment (WEEE). By the end of January this year Shore acquired WEEE recycling firm M Baker Recycling from St. Helens, after that company faced financial difficulties.

Commenting on the acquisition, Colin Drummond, Chief Executive of Viridor says, 'The UK's waste strategy demands ever increasing levels of recycling, particularly now in the area of waste electrical and electronic equipment. Shore has an excellent track record in leading the way in this market in the North of the UK and is well placed to capitalise on this opportunity. The acquisition has an excellent geographic and business fit with Viridor's existing operations and is expected to be earnings enhancing before amortisation of intangibles in its first full year.'

Acknowledgement

www.pennon-group.co.uk