The waste management firm said it may pay another £5mln based on the performance of the business through to March 2021.
Simply Waste is an industrial and commercial waste collection business located in the south of England. In the year to March 31, 2020, it reported revenues of £32mln, underlying earnings (EBITDA) of £5.2mln, operating profit of £3.1mln and gross assets of £16.4mln.
Biffa said the acquisition will be earnings accretive from the outset and will deliver synergies from operational benefits, while it is in line with its investment strategy to grow its industrial and commercial operations.
Shares advanced 2% to 232.15p on Friday at the opening bell.