U.K.-based Biffa plc has completed the acquisition of O'Brien Waste Recycling Solutions Holdings Ltd., a leading provider of waste and recycling solutions in the North East of England.
O'Brien has been acquired for a cash consideration of $45.44 million, funded from Biffa's existing cash and debt facilities, with a further contingent consideration of up to $1.16 million payable subject to the satisfaction of certain conditions[i]. The acquisition is expected to be immediately earnings enhancing for the group.
As at 30 April 2017, O'Brien WRS generated annual revenues of $44.4 million, EBITDA of $8.5 million, operating profit of $6.8 million and had gross assets of $19.75 million], and has 190 employees.
O'Brien WRS serves approximately 3,600 customers and generates revenues of $26.7 million, will be incorporated into Biffa's existing Industrial & Commercial collection business, enabling the combined business to operate more efficiently and enhance its customer service offering.
In addition the acquisition brings a substantial recycling and waste treatment operation across three locations which serves both commercial and local authority customers and which will significantly strengthen Biffa's infrastructure in the region. These facilities will be incorporated into Biffa's Resource Recovery and Treatment divisions.
"The acquisition of O'Brien WRS is further evidence of our ongoing strategy of combining organic growth with value-creating acquisitions which enhance our network, capabilities and service offering,” Biffa CEO Ian Wakelin said in a statement. “As one of the UK's largest waste management companies, Biffa is a natural consolidator, with the scale, reputation and expertise to grow and build upon our market leading positions.”