Waste management firm sold for £14m
A LANCASHIRE waste management specialist has been sold for £14.25m to listed water and waste company Pennon Group.
Based in Leyland, JWS Churngold will become part of Pennon’s Viridor Waste Management subsidiary.
JWS Churngold provides waste logistics and transport for the Lancashire Private Finance Initiative (PFI) waste contract. The company, owned by around a dozen individuals, was advised by a team from investment bank Altium in Manchester led by Adrian Reed.
Pennon said the deal was in line with its strategy of expanding its waste management activities, particularly in the contracts and recycling sectors.
JWS Churngold has a contract with Global Renewables Lancashire Operations Limited, the contractor to the Lancashire waste management PFI. It transports all waste derived from the Lancashire and Blackpool local authorities’ transfer stations to Global Renewables’ PFI treatment facilities at Thornton and Leyland, and then transfers all materials for recycling or disposal.
Colin Drummond, chief executive of Viridor, said: “JWS Churngold’s operations in Lancashire fit well with our existing and planned operations in the North West, including those associated with the Viridor/Laing Greater Manchester waste PFI. The acquisition is expected to be earnings enhancing in its first full year.”
Adrian Reed of Altium said: “This transaction demonstrates the increasing attraction of specialist waste and recycling services. In acquiring JWS Churngold, Viridor continue to grow their concentration of expertise and activities in the North West.
“This is an example of a local, entrepreneurial firm developing a strong presence and operating base before being consolidate by a major industry player, benefiting both parties.”
Jodi Birkett and Paul Stott from Deloitte’s transaction services team in Manchester provided vendor due diligence on the deal.
