May 2008

Pennon acquires Scotland’s Shore Recycling

Pennon Group Plc announced that its Viridor Waste Management Limited subsidiary has acquired Shore Recycling Ltd (Shore), a UK waste electrical and electronic equipment (WEEE) recycling company, for £23m (US$46 million).

The acquisition is in line with the Group’s strategy of expanding its waste management activities. Shore is headquartered in Perth, Scotland, and has recycling facilities in Perth, Manchester and St. Helens, along with an associated collection fleet.

With the UK’s recent implementation of the European Union’s WEEE Directive, WEEE recycling is expected to grow fast.

Commenting on the acquisition, Colin Drummond, chief executive of Viridor said, “The UK’s waste strategy demands ever increasing levels of recycling, particularly now in the area of waste electrical and electronic equipment. Shore has an excellent track record in leading the way in this market in the North of the UK and is well placed to capitalize on this opportunity. The acquisition has an excellent geographic and business fit with Viridor’s existing operations and is expected to be earnings enhancing before amortization of intangibles in its first full year.”