Greenstar Expands Collection Arm with Verdant Acquisition

2nd November 2007: Greenstar UK, the leading recycling led waste management company, is pleased to announce the acquisition of Verdant Group Plc, (“Verdant”), one of the largest independent municipal services providers to UK local authorities.

Verdant’s core business is the provision of refuse collection, recycling and other associated services under long term contracts to 19 local authorities, based mainly in the South East. Following the acquisition of Waste Services Ltd in 2006, Verdant also provides a trade waste and recycling collection service to businesses in the South/South East.

Based in Sevenoaks, Kent, Verdant operates from 33 sites and collects over 100,000 tonnes of recyclable materials per annum. Forecasted revenue for the year ended 31 October 2007 is approximately £45m.

The acquisition of Verdant will significantly extend the scale of Greenstar UK’s activities, creating an enlarged Group with forecast revenue of £121m, managing over 270,000 tons of material per annum, operating from 38 facilities throughout the UK. The enlarged Group will have approximately 1,450 employees and operate a fleet of 525 trucks.

Verdant was jointly owned by Jon and Simon Miles who acquired the business in 2001. Both Jon and Simon will stay with the company following the acquisition to help secure the continued successful growth of the combined organisation.

Commenting on the acquisition, Ian Wakelin, Managing Director of Greenstar UK said: “This is a significant acquisition for Greenstar UK and strongly supports our strategic objective of becoming the leading recycling led waste management company in the UK through the development of a nationwide footprint of recycling and reprocessing facilities. The municipal waste management market is valued at approximately £1.6 billion, of which some 40% is outsourced to the private sector. 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, providing the municipal market with a company that has strength in both collection and reprocessing of recyclables.” 

“In addition, 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 fully integrated waste management solutions to the business sector. The acquisition will also provide us with the opportunity for substantial growth through Verdant’s commercial waste division,” Mr Wakelin concluded.

Jon Miles, commented: “We believe that the success of both companies to date will be further enhanced by this development. From a strategic and cultural point of view there are great synergies between the two organisations which will provide a strong platform for further growth and development of the enlarged entity.”