(Alliance News) - Biffa PLC on Thursday announced it has acquired UK surplus food and household products redistributor Company Shop Group Ltd for an upfront enterprise value of GBP82.5 million.
Company Shop Group is the only commercial redistributor of scale in the UK which identifies surplus produce and then collects, processes and redistributes it for sale through its network of membership-based outlets.
The FTSE 250-listed waste management firm based in High Wycombe said the acquisition was funded from existing debt facilities and will be immediately earnings enhancing upon completion.
Biffa said Company Shop Group will help to further improve its capability to support its customers' waste reduction and recycling targets, as well as offering growth opportunities with "increasing regulatory, social and environmental tailwinds, underpinning a significant addressable market opportunity."
"The acquisition of Company Shop Group strengthens Biffa's leadership position in the UK circular economy. Its redistribution services complement Biffa's established waste and recycling services, and supply of closed loop recycled raw materials. As the only commercial redistributor of scale in the UK, Company Shop Group is the market-leader in a growing sector, with a strong, credible growth plan which we will deliver together," said Chief Executive Michael Topham.
Shares in Biffa were up 3.5% at 253.50 pence in London on Thursday.
By Zoe Wickens; zoewickens@alliancenews.com
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