Waste management behemoth Biffa has acquired Newcastle-based O’Brien Waste Recycling Solutions in a £36m deal.
As at 30 April, O’Brien generated annual revenues of £34.4m with earnings before interest, tax, depreciation and amortisation (ebitda) hitting £6.6m.
Last month, Biffa reported a £18.7m pre-tax loss for the year to 24 March. The firm was hit by £29m of exceptional costs following its initial public offering in October last year.
At the time of writing, Biffa's shares were up 2.85 per cent at 225.75p.
Ian Wakelin, chief executive of Biffa, said: “This acquisition significantly strengthens our market presence in the north east of England. We welcome the employees of O’Brien to Biffa and we look forward to working together to provide a great service to our customers.”
Nathan O’Brien, managing director of O’Brien Waste Recycling Solutions, commented: “O’Brien’ wide range of recycling solutions serve both commercial and local authority customers and have driven continuous, successful growth.
“The opportunity to join Biffa was a natural choice for our business due to Biffa’s scale, UK-wide network and complementary capabilities. Being part of a bigger group creates many exciting opportunities for the combined businesses.”