Kier Group has expanded its waste management business through the acquisition of Pure Recycling and Pure Buildings from Nicholas Spencer and Jodie Spencer.
Pure Recycling and Pure Buildings own a materials recycling facility which is under construction at Ettington in Warwickshire. Its currently due for completion in March 2011 and will be one of the largest materials recycling facilities in the UK able to process 25t of recycled waste per hour.
The deal is for £2M payable immediately and a further maximum of £5.1M contingent on unspecified terms.
Kier Group chief executive Paul Sheffield said the move would improve the firm’s work in local government.
“We are delighted with the acquisitions which strengthen Kier’s waste management and recycling business and will leave the Group well placed to take advantage of future market growth in the sector. In particular, we look forward to working closely with Local Authorities and Councils to help them to achieve their recycling targets,” he said.
The acquistion was announced as the firm released a trading update in which it said it continued to achieve good results in all of its key performance measures of cash, profits and order books.
Revenues for 2011 would be slightly ahead of 2009, it said.
Power and infrastructure are market sectors that it believes are poised to grow significantly over the next five years. In the power sector its major power station project for EdF at West Burton is progressing well and it is bidding for the first of the major contracts for EdF on the Hinckley Point nuclear power station. In the infrastructure sector it has started work on one of the enabling contracts for Crossrail in London and is currently tendering for Crossrail tunnelling and station contracts and for similar work for MTRC in Hong Kong and in Saudi Arabia.