(Alliance News) - Biffa PLC has entered into an agreement to acquire the collections business and a number of recycling assets from Viridor Waste Management for GBP126 million, it announced on Friday.
Shares were up 6.3% at 294.50 pence in London on Friday, the best performer in FTSE 250 early trading.
Waste management firm Biffa said completion of the deal is expected no earlier than August.
"When combined with the other investments we have made over the past year across waste reduction, recycling and energy recovery, we have positioned the group as a leading enabler of the UK circular economy, ready to tackle the UK's waste challenge. We look forward to welcoming our new colleagues from Viridor to Biffa in due course," Chief Executive Michael Topham said.
Biffa has been on an acquisition streak this year, buying UK surplus food and household products redistributor Company Shop Group Ltd for an upfront enterprise value of GBP82.5 million in February.
Viridor was sold by water utility Pennon Group PLC in July last year to funds advised by Kohlberg Kravis Roberts & Co.
By Will Paige; willpaige@alliancenews.com
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Pennon (PNN)