Biffa, headquartered in High Wycombe, has acquired Specialist Waste Recycling (SWRNewstar) from a consortium of investors including Angus MacDonald OBE. The deal value is £25.8 million.
For the year ended December 31, 2018, SWRNewstar, based in Alton, generated revenues of £40.1m, an underlying EBITDA run rate of £3.5m, and underlying operating profit of £3.4m and had gross assets of £15.7m. The business also brings with it a workforce of circa 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.
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 cashflow 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.”