22nd Jun 2005 07:00
Pennon Group PLC22 June 2005 22 JUNE 2005 PENNON GROUP PLC PENNON GROUP EXPANDS ITS WASTE MANAGEMENT BUSINESS Pennon Group Plc announces that its subsidiary, Viridor Waste ManagementLimited, has acquired Brett Waste Management Limited ("Brett Waste"), thelandfill and power generation business, from Robert Brett and Sons Limited.Brett Waste had net assets at year end 31 December 2004 of £14.1m. Theacquisition is in line with Pennon Group's stated strategy of expanding itswaste management activities, particularly in the areas of landfill and powergeneration. Brett Waste is headquartered near Canterbury and comprises: strategicallylocated landfill sites in Kent and Essex with approximately 11m cubic metres ofconsented capacity; landfill gas power generation schemes totalling 6 MWcapacity; and associated transfer station and collection activities. As aresult of the acquisition, Viridor Waste's consented landfill capacity increasesto approximately 91m cubic metres and its power generation to 58MW. Theacquisition will be integrated into Viridor Waste's south east region and isexpected to be earnings enhancing before goodwill in its first full year. Commenting on the acquisition, Colin Drummond Chief Executive of Viridor Waste,said, "This acquisition fits very well with Viridor Waste's strategy ofexpanding its landfill and power generation businesses in key regions of thecountry". For further information please contact: Colin Drummond, Chief Executive, Viridor Waste Limited- today (22/6/05) 07831 145157- tomorrow (23/6/05) 01392 443004- thereafter 01823 721400Jo Finely, Investor Relations Manager, Pennon Group Plc, on 01392 443401Mark Harris, Finsbury, on 0207 2513801 Additional information: Viridor Waste Management is a leading provider of essential waste and recyclingservices in the UK. It has core competences in waste disposal by landfill, thegeneration of electricity from landfill gas and the operation of materialsrecycling facilities. It also operates waste transfer stations, civic amenitysites and composting facilities in a number of regions of the UK. It has awaste collection fleet of 270 vehicles, 6 liquid waste treatment plants and aclinical waste incinerator. Viridor's stated strategy is to: • capitalise on its leading position in waste disposal by landfill; • exploit opportunities in renewable energy generation; and • pursue profitable opportunities arising from the UK Government's developing waste strategy. Following this acquisition, the company has total consented landfill capacity ofapproximately 91m cubic metres. This capacity is located particularly in theSouth East, South West and North of England, and in Scotland. Gas produced from landfill sites (landfill gas) is increasingly used to generateelectricity. It is a form of renewable energy and now represents over 25percent of the UK's total renewable energy generation. The UK Government'sstrategy is to increase the percentage of electricity generated from renewablesources from the current figure of below 4 percent to a target of 10 percent in2010 and 15 percent in 2015, with an aspiration of 20 percent in 2020. To meetthese targets, the UK Government has introduced premium pricing regimes, mostrecently Renewable Obligation Certificates ("ROCs"), to encourage all eligibleforms of renewable energy including landfill gas. Following the acquisition,Viridor has approximately 58 MW of capacity of which around 50 percent iseligible for ROCs. 22 June 2005 www.pennon-group.co.uk End transmission This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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