(Alliance News) - Biffa PLC on Friday said it has acquired industrial and commercial waste collection business Simply Waste Solutions.
Biffa has acquired Camo Ltd, which trades under Simply Waste and operates in the south of England, for a GBP35 million upfront debt and cash free consideration. This is to be funded using Biffa's existing committed debt facilities.
For the year ended March 31, Simply Waste reported GBP32 million of revenue and earnings before interest, tax, depreciation, and amortisation of GBP5.2 million. It also made a GBP3.1 million operating profit and has gross assets of GBP16.4 million.
Biffa could pay a further up to GBP5 million consideration depending on Simply Waste's performance through to March 2021.
The buy is accretive to Biffa's earnings from the outset and delivers synergies from operational benefits. The deal is also in line with Biffa's investment strategy to grow industrial and commercial operations and consolidate Biffa's leading position in the market.
Biffa Chief Executive Michael Topham said: "The acquisition of Simply Waste demonstrates further progress against our strategic plans. We have a clear focus to grow our Industrial and Commercial business through acquisitions as a natural consolidator within this fragmented market.
"We are delighted to welcome the Simply Waste team and their customers to Biffa. Simply Waste has an excellent reputation, complementing Biffa's existing footprint in the south of England, and I am confident that this acquisition will enhance the strength of our service offering in the region for our combined customers."
Shares in Biffa were up 2.4% at 233.02 pence in London on Friday morning.
By Anna Farley; annafarley@alliancenews.com
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