15th May 2006 07:02
Pennon Group PLC15 May 2006 15 MAY 2006 PENNON GROUP PLC PENNON GROUP EXPANDS ITS WASTE MANAGEMENT BUSINESS Pennon Group Plc announces that its subsidiary, Viridor Waste ManagementLimited, has acquired Wyvern Waste Services Limited, the landfill, powergeneration and recycling business, from Somerset County Council for £25 million.Viridor has also entered into long-term waste management contracts with theCounty as a Public Private Partnership (PPP). The acquisition is in line withPennon Group's stated strategy of expanding its waste management activities,particularly in the areas of landfill, power generation and PFI/PPP contracts. Wyvern Waste is headquartered in Taunton and comprises: strategically locatedlandfill sites in Somerset with approximately 5.1 million cubic metres consentedcapacity; landfill gas power generation schemes totalling 7.1 Megawatts (MW)capacity; and associated transfer stations, recycling and collection activities.As a result of the acquisition, Viridor Waste's consented landfill capacityincreases to approximately 92 million cubic metres and its power generation to68MW. The acquisition will be integrated into Viridor Waste's south west regionand is expected to be earnings enhancing before amortisation of intangibles inits 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, power generation and long term integrated municipalcontract businesses in key regions of the UK". For further information please contact: Colin Drummond, Chief Executive, Viridor Waste Limited, on 01823 721431Jo 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 competencies 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 and has a wastecollection fleet of 365 vehicles, a liquid waste treatment plant, and a clinicalwaste incinerator. Its 25 year waste management PFI with West Sussex CountyCouncil has been operating since April 2004 and the current Somerset PPP is itssecond such long term contract. Through its joint venture with Grundon WasteManagement it is building a 400kt/32MW energy from waste facility at Colnbrookwest of London. 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, including PFI/PPP contracts. Following this acquisition, the company has total consented landfill capacity ofapproximately 92m cubic metres. This capacity is located particularly acrossthe South, North West and East of England, and the Central Belt of Scotland. Gas produced from landfill sites (landfill gas) is increasingly used to generateelectricity. It is a form of renewable energy and now represents around 30percent 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 around 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 68 MW of capacity of which around 46 percent iseligible for ROCs. 15 May 2006 www.pennon-group.co.uk End transmission This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Pennon