Biffa plc - Acquisition

This announcement contains inside information

Biffa plc

Acquisition of Simply Waste

9 October 2020

Biffa plc ('Biffa'), the UK's leading sustainable waste management business, announces that it has today acquired Simply Waste Solutions ('Simply Waste'), a leading industrial and commercial ('I&C') waste collection business in the south of England. Biffa has acquired 100% of the share capital of Camo Ltd, which trades under the Simply Waste brand, for an upfront debt and cash free consideration of £35m. This will be funded from existing committed debt facilities.

For the year ending 31 March 2020, Simply Waste reported revenues of £32m, EBITDA of £5.2m, operating profit of £3.1m and gross assets of £16.4m. A potential further consideration of up to £5m may become payable, depending on the performance of the business through to 31 March 2021.

Simply Waste is a prominent, well-regarded operator in the south of England. Its operational locations in west London, Oxfordshire and Bristol align well with Biffa's existing portfolio, and once merged into the Biffa I&C collection network will result in an enhanced customer proposition and a lower-carbon, more efficient collection network.  

The acquisition is earnings accretive for Biffa from the outset and will deliver synergies from operational benefits. It is in line with both Biffa's stated investment strategy to grow its I&C operations, consolidating its leading position in this highly fragmented market, and its ambition as set out in its sustainability strategy to create the UK's most efficient, low-carbon collection operation.   

Michael Topham, Chief Executive, commented:

"The acquisition of Simply Waste demonstrates further progress against our strategic plans. We have a clear focus to grow our Industrial and Commercial business through acquisitions as a natural consolidator within this fragmented market.

"We are delighted to welcome the Simply Waste team and their customers to Biffa. Simply Waste has an excellent reputation, complementing Biffa's existing footprint in the south of England, and I am confident that this acquisition will enhance the strength of our service offering in the region for our combined customers."

James Capel, Chief Executive and majority owner of Simply Waste, commented:

"Simply Waste is a fast growing and innovative business with its people and customers at the heart of everything it does.  I am delighted that the acquisition of Simply Waste by Biffa will build on these values and that the combined business will help deliver an even stronger and more efficient business.  I am proud to have led this business from start up to exit and look forward to helping bring the businesses together."

Enquiries:

Investors

Michael Topham, Chief Executive Officer

Richard Pike, Chief Financial Officer

ir@biffa.co.uk

Media & Analysts

Houston

T: +44 (0) 203 701 7660

biffa@houston.co.uk

Cautionary statement regarding forward-looking statements

This announcement contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the Company's business. Whilst the Company believes the expectations reflected herein to be reasonable in light of the information available to them at this time, the actual outcome may be materially different owing to factors beyond the Company's control or within the Company's control where, for example, the Company decides on a change of plan or strategy. Accordingly, no reliance may be placed on the figures contained in such forward-looking statements.

The forward-looking statements contained in this document speak only as of the date of this announcement, and Biffa does not undertake to update any forward-looking statement to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. 

About Biffa

Biffa has been at the forefront of the UK's waste industry for over a hundred years, with operations that span the entire breadth of the waste management process including collection, recycling, treatment, disposal and energy generation. We exist to change the way people think about waste; to help people see the opportunities that exist when we manage our waste in the right way, and to make that happen. We understand the vital role we have to play in helping the UK to address the climate emergency and deliver sustainable growth. This involves an ambitious investment programme in green economy infrastructure and low carbon collections, alongside an ongoing commitment to sector leadership in the health, safety and wellbeing of our people. Biffa is a Great British company. In FY20, the Group's total revenue was £1,102.8m and its Underlying EBITDA was £174.0m. We have been listed on the London Stock Exchange since October 2016 under the ticker "BIFF". In March 2020, Biffa entered the FTSE-250.

For more information visit www.biffa.co.uk/investors