Waste management group Biffa has struck a deal to buy the collections business and some recycling assets from Viridor Waste for £126m.
Biffa said the acquisition would add £85m in revenue for its industrial and commercial division from a base of 21,000 customers and a network of 15 depots across the UK.
It added that synergy opportunities of at least £10m were expected to be delivered within a 12 – 18 month period from completion and the deal would be earnings enhancing on day one.
The cash deal will be funded from £150m of new seven and 10 year private placement facilities with MetLife Investment Management and Pricoa Private Capital with an average cost of 2.73%.
“The group expects underlying EPS accretion of around 3 pence per share once synergies have been realised,” Biffa said.
