Biffa Share Price
The Biffa share price (LON:BIFF) is up by over 7% on Friday to 298p per share. Its recent surge has established its level back above its pre-pandemic peak. Since the turn of the year, it is up by 29.6%. Investors, impressed by the FTSE 250 company’s recent form, are now turning their attention to Biffa. Following its acquisition of Viridor Waste Management, now could be an opportune time to buy.
Viridor acquisition
Biffa, the waste management company, has agreed a deal to acquire Viridor for £126m. The move will expand Biffa’s collection business and will therefore boost its earnings immediately.
Biffa is purchasing the all of Viridor’s nationwide collections business. This amounts to 270 vehicles, picking-up waste from industrial and commercial customers, in addition to 15 depots. Viridor collects around £85m a year in revenue.
Prior to the pandemic, Biffa generated in the region of £871m in revenue during the last financial year. Therefore the move will significantly add to Biffa’s existing entities.
It is expected that the addition of Viridor’s business will improve efficiency and scale, delivering £10m worth of synergies.
Biffa has also outlined its strategy of buying a portfolio of recycling and treatment facilities that generate yearly revenues of £39m. These purchases are supported by long-term contracts established with local authorities. ‘This acquisition expands Biffa’s collections business and recycling capabilities while solidifying its leading position in UK sustainable waste management,’ said Biffa.
Recycling
Biffa also recently announced plans to double the amount it can recycle at its facility in Aldridge to 80,000 tonnes a year. Extra capacity will allow for vastly more waste to be recycled, the company said.
The waste management company also set a goal of quadrupling its recycling capacity by 2030.
“It means more recycling can happen on our own shores and creates sustainable materials that can be used in manufacturing. The additional capacity is a significant investment in our business within the North East and further establishes Biffa as a leader in in closed-loop plastic recycling.”
Biffa is maintaining its position at the forefront of the UK waste industry, as well as acting on its mission to address the climate emergency. In a robust industry, the Biffa share price could be worth keeping an eye on for investors.
