Viridor, the UK recycling and waste management firm, has spent £15.75m buying Community Waste Holding Limited and Community Waste Recycling Limited, a recycling and paper trading business based in Milton Keynes.

Viridor is part of the Pennon Group, which also owns South West Water and is seen as a good example of a utility company that has diversified following privitisation.

Of the £15.75m, £8.775m will be paid in cash with a further £6.975m going on loan notes.

The Community Waste businesses have a total annual contract volume of 90,000 tonnes of waste including a number of long and medium term municipal contracts.

Commenting on the acquisition, Colin Drummond, Chief Executive of Viridor said, "The UK's waste strategy demands ever increasing levels of recycling whilst the world has an increasing demand for raw materials including recyclate"

He added: "Community Waste's operations in Bedfordshire and Oxfordshire fit well with our existing operations ... and also provide additional volumes for our international trading arm."

Shares in Pennon rose 0.22% in early trading. Over the year so far Pennon is up 9.22%.

BS

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