Integrated waste management company Biffa has announced that it has today (12 March) acquired Specialist Waste Recycling Limited (‘SWRNewstar’), from a consortium of investors including Angus MacDonald OBE.
SWRNewstar has been acquired for a consideration net of cash acquired of c£25.8 million, funded from Biffa’s existing cash and debt facilities.
For the year ended 31 December 2018, SWRNewstar generated revenues of £40.1 million, an Underlying EBITDAi run rate of £3.5 million, and Underlying Operating Profitii of £3.4 million and had gross assets of £15.7 million. The business also brings with it a workforce of c.90 people.
SWRNewstar’s business model is to provide waste and recycling solutions to its customers on a national basis, with the physical delivery of the service provided by a network of sub-contractors. Biffa is an established sub-contractor to SWRNewstar, servicing around 11% of SWRNewstar’s customers’ requirements.
The acquisition provides Biffa with the opportunity to increase the proportion of work serviced by its collection and processing network, as well as expanding routes to market, the company says.
Michael Topham, Chief Executive Officer of Biffa, said:“The acquisition of SWRNewstar represents a compelling opportunity for Biffa and provides further evidence of our ability to identify and execute cash flow enhancing and earnings accretive acquisitions.
“Bringing together SWRNewstar with Biffa’s leading Industrial & Commercial business will strengthen our offering while enabling us to profitably leverage our national network. We welcome the staff and customers of SWRNewstar to Biffa.”