LONDON-LISTED waste management business Shanks yesterday said it has agreed to sell the majority of its UK solid waste business to peer Biffa for £9.5m.
In addition, Shanks will divest its remaining UK solid waste business – which collects, sorts and processes commercial and industrial waste – by selling its Blochairn and Kettering materials recycling facilities. The disposal of the two facilities is already underway and is expected to earn Shanks £3m.
The total divestment of its UK solid waste business, which reported operating losses of £3.6m last year, is expected to save Shanks £2m in annual costs.
“The sale is in line with our strategy of actively merging our portfolio,” chief executive Peter Dilnot told City A.M.
Dilnot added that there are no further divestments imminent and said that the company’s focus is now on growing the core segments of the business.
“Following the transactions, the group's UK operations will be focused on its profitable and growing UK municipal business, which provides recycling and waste management services to local authorities in the UK, and is underpinned by long-term contracts,” said the company.
“Shanks is well positioned for future growth, with a portfolio of strong businesses in attractive key markets.”
Ian Wakelin, CEO of Biffa, said: "This acquisition will enable us to leverage our national infrastructure, grow our market share and enhance our leading industrial and commercial services.
"It is a progressive move for Biffa in line with industry trends towards consolidation to match waste volume levels. Biffa has a strong platform for growth based on its reputation for excellent customer service and its infrastructure. We are pleased to continue to invest in the business and enhance our position at the forefront of the evolving waste management industry."