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Greenstar makes two acquisitions in deals worth €20 million
9th October, 2006
- South-East based Ormonde Waste
- Cork based Hannon Recycling
- €25 million infrastructural development also announced
Greenstar, Ireland's leading waste management company, has today (9 October 2006) announced the acquisitions of South-East based Ormonde Waste, and 100% of the share capital of Cork based Glyntown Enterprises Limited, trading as Hannon Recycling, in two transactions totaling €20 million.
Announcing the deals, which bring the number of acquisitions by Greenstar to eleven since 1999, Steve Cowman, Greenstar chief executive, said: "Today's news demonstrates that Greenstar continues its aggressive growth track though strong organic and inorganic expansion. Our excellent record of integrating and investing in the companies we acquire has been a significant factor of our growth, with turnover of €95 million recorded last year. With today's acquisition of two strong and strategically positioned companies, our projected exit revenue rate is €130-140 million for 2006 and our national footprint is enhanced."
The acquisitions are the first since Greenstar's announcement in February this year that it had secured debt refinancing of €200 million that would be used to extend its national footprint in the commercial, industrial and domestic waste channels though acquisition and investment in critical infrastructure. Greenstar has today also announced the opening of Millennium Park, the largest automated materials recycling facility in Ireland, in an investment worth €25 million.
One of the largest waste management and recycling companies in the South-East, Ormonde handles almost 80,000 tonnes of waste per year. The deal includes Material Recycling Facilities (MRF) in Kilkenny, Wexford and Waterford and complements Greenstar's acquisition of Kelly Recycling, the Co. Wexford based recycling and waste management operator, in April 2005. Greenstar will now be servicing a combined customer base of 8,500 domestic customers and more than 2,000 commercial customers in the South East region and will additionally benefit from business from seasonal holiday home and caravan customers.
Hannon Recycling specialises in the collection and processing of mixed and source segregated dry recyclables in Cork City and County. This acquisition represents a major milestone in Greenstar's strategic plan to develop its Munster dry recyclable business. Hannon is the largest recycling operator in Cork, handling circa 14,500 tonnes of dry mixed recyclables per annum.
The combined turnover of the two companies is circa €17 million. In addition to consolidating Greenstar's position in the South-East, the Ormonde acquisition will provide significant volumes to other Greenstar operations including its Bray and Ballynagran facilities in Co. Wicklow.
The Hannon acquisition includes the purchase of the Glyntown site and buildings, permitted by Cork County Council to handle dry recyclable materials. The site is adjacent to Greenstar's EPA licensed Sarsfield Court materials recycling facility (MRF) in Glanmire. Hannon has an excellent recovery rate of 99% and currently handles only 14,500 tonnes of recyclable material. The estimated total market for dry recyclables in Ireland is about half a million tonnes per year. This acquisition brings Greenstar's current total recyclable share to circa 40,000 tonnes and presents a significant opportunity for Greenstar to drive incremental volumes in the area.
Greenstar will continue to employ the management team and staff of both Ormonde and Hannon.
For further information contact:
Sarah Ryan /Oonagh Daly, Drury Communications
01 260 5000 / 087 6767452 / 087 855 4406
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