Ireland’s largest waste management company Greenstar is to acquire the commercial waste and recycling operations of Veolia Environmental Services in Ireland for an undisclosed sum.
The sale, which is part of the asset disposal programme announced by parent company Veolia Environnement earlier this year, does not include Veolia’s hazardous waste management business, which will continue to operate as part of its strategic plan in the Irish market.
The acquisition, which is subject to Competition Authority approval, will enable Greenstar to enter the Northern Ireland market where Veolia has a materials recycling facility located in Newry.
The deal will also lead to a gain of 3,500 corporate customers. The company currently has an existing commercial customer base of 10,000 and 60,000 domestic customers.
Greenstar, which is part of the NTR group last month succeeded in refinancing a €120 million debt facility.
“This acquisition enables Greenstar to bring increased efficiency to its operations, drive better and innovative recycling and further improve the price and product offering to its customers,” said Neil Parkinson, chief executive, Greenstar.
“The current downturn has resulted in overcapacity in the waste industry. The combination of Veolia’s commercial waste business with Greenstar will allow us to benefit from greater economic synergies; the increased throughput will improve the yield from our existing recycling facilities and further enable the company to invest in recycling infrastructure,” he added.
