A waste management group with a projected £121 million turnover has been created following an undisclosed deal.
A waste management group with a projected £121 million turnover has been created following an undisclosed deal.
Greenstar UK, a recycling-led waste management company, has bought Verdant Group plc, an independent municipal services provider to local authorities in the UK.
The acquisition of Verdant extends Greenstar’s activities to managing more than 270,000 tons of waste a year from 38 sites throughout the UK. The enlarged group will have a fleet of 525 trucks and some 1,450 employees.
Greenstar’s chief executive, Ian Wakelin, said this deal is part of the group’s plan to become the leading recycling-led waste management company in the UK. “The combination of Verdant’s strength in municipal collection and Greenstar’s processing capabilities puts us in a unique position to compete in this market.
“With expected growth in the volume and value of the commercial waste market through increasing levels of recycling, we believe there is a significant opportunity to offer a fully-integrated waste management service to the business sector,” he added. “The acquisition will also provide us with the opportunity for substantial growth through Verdant’s commercial waste division.”
Verdant was sold by Jon and Simon Miles who bought the business in 2001. Both will remain with the company post-completion.
Jon Miles said the success of both companies will be enhanced by this deal. “From a strategic and cultural point of view there are great synergies between the two organisations that will lead to the growth and development of the enlarged entity.”
Greenstar was advised by law firm BP Collins, whose team was led by partner Alex Zachary. He was supported by senior associate David Smellie, property associate Sue Deacon and employment partner Jo Davis.
Zachary, who has advised on all of Greenstar’s UK deals in the waste sector, commented: “This acquisition emphasises Greenstar’s commitment to developing a nationwide infrastructure of recycling and reprocessing sites for the benefit of its clients and the environment.”
Greenstar was also supported by Deloitte, which provided M&A transaction support through partner David Carson and director Craig Bale from its UK and Dublin offices.
The team project managed the deal, which included providing a financial and tax due diligence review and advising on the share purchase agreement.
“This transaction extends Greenstar UK’s scale of operations,” Carson said. “In particular, it provides it with a significant presence in the municipal waste market which will facilitate further growth in this area and will support the growth of the recycling business.”
Verdant provides refuse collection, recycling and associated services under long-term contracts to 19 local authorities mainly in the southeast. Following the acquisition of Waste Services in 2006, Verdant has also provided a trade waste and recycling collection service to businesses in the south and southeast.
The company, which is based in Sevenoaks, Kent, operates from 33 sites and collects more than 100,000 tonnes of recyclable materials each year.
