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Greenstar acquires two further waste management companies
- Acquisition of two waste management companies for total of €15.5 million
- Turnover at Greenstar on target for €160 million plus in 2007 - representing a doubling in revenue in the past three years
- Greenstar poised to enter Northern Ireland market
Greenstar, Ireland's largest integrated waste management company, has today (2 September 2007) announced the acquisition of two further companies in the waste management sector - Bailey Waste Recycling and Waterford-based Rainbow Refuse - for a total consideration of €15.5 million.
These two transactions, which bring Greenstar's acquisitions to thirteen over the past eight years, follow the company's announcement in 2006 that it had secured debt refinancing of €200 million to extend its national footprint in the commercial, industrial and domestic waste channels through acquisition and through investment in much-needed critical infrastructure. Greenstar is on target for a turnover in excess of €160 million this year, representing a doubling of turnover in the past three years through a combination of acquisitions and organic growth.
The acquisition of Bailey Waste Recycling, the market leader in paper recycling in Ireland, significantly bolsters Greenstar's position in this market and complements its acquisition last year of Cork-based Hannon Recycling, which also has a sizable paper and dry mixed recyclables operation. Bailey currently handles 12% of the Irish commercial paper recyclables market, processing 55,000 tonnes per annum for corporate customers including Bank of Ireland, ESB, PricewaterhouseCooper and Hewlett Packard. Bailey's management team, led by Andrew Bailey whose grandfather founded the company in 1940, will now manage Greenstar's Recyclate Trading business in Ireland.
The acquisition of Bailey Waste Recycling brings to 125,000 tonnes the amount of Dry Recyclables materials (paper and other recyclables) handled by Greenstar in the Republic of Ireland which in turn represents 18% of the market and a leadership position in this important and growing market segment.
Consistent with Greenstar's strategy of expanding its footprint in the domestic waste market, Greenstar has also acquired Rainbow Refuse, a predominantly domestic collection business based in Waterford and handling 5,000 tonnes per year.
The combination of Rainbow's 3,000 strong customer base with that of Ormonde Waste, one of the largest waste management and recycling companies in the South-East which was acquired by Greenstar in 2006, makes Greenstar the undisputed number one player in the domestic waste market in the Waterford region. The deal also consolidates Greenstar's footprint in the domestic waste sector along the South-East coast and provides a bridge between the company's offerings in the Cork and Kilkenny areas.
A further benefit of completing the Bailey Waste Recycling acquisition is that it provides the opportunity to enter the Northern Ireland market through the option of acquiring Bailey's share of their Northern Ireland business (Bailey Waste Northern Ireland). Once executed this would represent a significant landmark for Greenstar in terms of expanding its operating base beyond the Republic of Ireland into Northern Ireland.
Announcing the deals, Steve Cowman, Greenstar Chief Executive, said: "Today's transactions support the company's stated strategic objectives of continued regional expansion, ongoing diversification and the strengthening of our domestic collection business.
We are continuing to capitalise on growth opportunities across several fronts. Greenstar's ambitious growth trajectory gives us a plan to double in size over the next 4 years."
Andrew Bailey, Managing Director of Bailey Waste and now the Managing Director of Greenstar's Recyclate business division, said: "The deal with Greenstar is an important milestone in the evolution of our business. Our strengths in operations management, sales and commodity brokering complement Greenstar's and we look forward to working with Greenstar management to grow the recyclables business."
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