Biffa has continued its growth within the UK waste market by agreeing terms on an acquisition that will see it take over the collection and processing business of Blakeley’s Recycling Ltd.
Blakeley’s Recycling is based in Wigan and employs over 130 people to run its collection service that runs across the North West of England. In 2013, it became a wholly-owned subsidiary of Martin Ainscough Holdings, which invested nearly £4 million in a new recycling facility on its Wigan site.
The business, including the collection depot and processing facility will be fully integrated into Biffa’s Industrial & Commercial Division when the acquisition is completed (expected to be on 1 November) and is expected to add over £7 million to annual revenues.
Biffa, which had the second largest revenue of any waste management services provider in the UK in 2014/15 (£878 million) announced earlier this month (September) that it was to offer stock in the company on the London Stock Exchange, ending over a year of speculation about whether the firm would be sold or floated.
It expects to raise approximately £270 million through the initial public offering (IPO) next month, and reports suggest that it will use the proceeds from the move to continue its ‘consolidation’ of the waste market by buying out smaller firms. Biffa has now acquired 21 waste management businesses since December 2013, including the waste collection business of Cory Environmental Group in June for £13.5 million.
Following a £1.5-million investment in its fleet last winter, Blakeley’s Recycling operates 35 vehicles which are used to offer commercial services diverting waste from landfill, with facilities to produce and bale refuse-derived fuel (RDF) at the site for export to Europe, as well as a food waste collection service.
Ian Wakelin, Chief Executive of Biffa, commented: “This transaction provides further demonstration that Biffa is a natural consolidator in the industry, with the technology, scale, reputation and expertise to grow and build upon our market leading positions in the UK.
“We look forward to welcoming Blakeley’s people to Biffa, and to working together to provide our customers with a best in class service.”
More information about Biffa and Blakeley’s Recycling can be found on the companies’ websites.
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