Biffa plc (LON:BIFF), the UK’s leading sustainable waste management business, has announced that it has today acquired Simply Waste Solutions, a leading industrial and commercial waste collection business in the south of England. Biffa has acquired 100% of the share capital of Camo Ltd, which trades under the Simply Waste brand, for an upfront debt and cash free consideration of £35m. This will be funded from existing committed debt facilities.
For the year ending 31 March 2020, Simply Waste reported revenues of £32m, EBITDA of £5.2m, operating profit of £3.1m and gross assets of £16.4m. A potential further consideration of up to £5m may become payable, depending on the performance of the business through to 31 March 2021.
Simply Waste is a prominent, well-regarded operator in the south of England. Its operational locations in west London, Oxfordshire and Bristol align well with Biffa’s existing portfolio, and once merged into the Biffa I&C collection network will result in an enhanced customer proposition and a lower-carbon, more efficient collection network.
The acquisition is earnings accretive for Biffa from the outset and will deliver synergies from operational benefits. It is in line with both Biffa’s stated investment strategy to grow its I&C operations, consolidating its leading position in this highly fragmented market, and its ambition as set out in its sustainability strategy to create the UK’s most efficient, low-carbon collection operation.
James Capel, Chief Executive and majority owner of Simply Waste, commented:
“Simply Waste is a fast growing and innovative business with its people and customers at the heart of everything it does. I am delighted that the acquisition of Simply Waste by Biffa will build on these values and that the combined business will help deliver an even stronger and more efficient business. I am proud to have led this business from start up to exit and look forward to helping bring the businesses together.”
Michael Topham, Chief Executive, commented:
“The acquisition of Simply Waste demonstrates further progress against our strategic plans. We have a clear focus to grow our Industrial and Commercial business through acquisitions as a natural consolidator within this fragmented market.
“We are delighted to welcome the Simply Waste team and their customers to Biffa. Simply Waste has an excellent reputation, complementing Biffa’s existing footprint in the south of England, and I am confident that this acquisition will enhance the strength of our service offering in the region for our combined customers.”