Acquisition

25th Mar 2008 07:01

Pennon Group PLC25 March 2008 PENNON GROUP PLC 25 March 2008 PENNON GROUP EXPANDS ITS WASTE MANAGEMENT BUSINESS Pennon Group Plc announces that its subsidiary, Viridor Waste ManagementLimited, has acquired Shore Recycling Ltd ('Shore'), a leading UK wasteelectrical and electronic equipment ('WEEE') recycling company, for a cashconsideration of £23m (debt free) from Messrs S M Howie, M A Todd and T H MLiddell. The acquisition is in line with the Group's strategy of expanding itswaste management activities. Shore is headquartered in Perth, Scotland, and has recycling facilities inPerth, Manchester and St Helens, along with an associated collection fleet.With the UK's recent implementation of the European Union's WEEE Directive, WEEErecycling is expected to grow fast. The company handles a full range of WEEEand benefits from modern purpose built recycling equipment. It has an excellentfit with Viridor's existing operations in the North West of England and inScotland. Commenting on the acquisition, Colin Drummond, Chief Executive of Viridor said,"The UK's waste strategy demands ever increasing levels of recycling,particularly now in the area of waste electrical and electronic equipment.Shore has an excellent track record in leading the way in this market in theNorth of the UK and is well placed to capitalise on this opportunity. Theacquisition has an excellent geographic and business fit with Viridor's existingoperations and is expected to be earnings enhancing before amortisation ofintangibles in its first full year." For further information please contact: Colin Drummond, Chief Executive, Viridor Limited on 01823 721435Jo Finely, Investor Relations Manager, Pennon Group on 07785 904763Mark Harris or Sally Hogan, Finsbury on 020 7251 3801 25 March 2008www.viridor-waste.co.ukwww.pennon-group.co.ukEnd transmission This information is provided by RNS The company news service from the London Stock Exchange

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