Biffa buys Viridor collection business, some recycling assets for £126m

Waste management group Biffa has struck a deal to buy the collections business and some recycling assets from Viridor Waste for £126m.

Biffa said the acquisition would add £85m in revenue for its industrial and commercial division from a base of 21,000 customers and a network of 15 depots across the UK.

It added that synergy opportunities of at least £10m were expected to be delivered within a 12 - 18 month period from completion and the deal would be earnings enhancing on day one.

The cash deal will be funded from £150m of new seven and 10 year private placement facilities with MetLife Investment Management and Pricoa Private Capital with an average cost of 2.73%.

“The group expects underlying EPS accretion of around 3 pence per share once synergies have been realised,” Biffa said.