Pennon bags Kent-based paper company

Pennon, the FTSE 100 water services and waste management group, has acquired Pulp Friction, a paper collection and processing business based in Erith, Kent.

The acquisition, made through Pennon's subsidiary Viridor, relates to the Pulp Friction business, assets and goodwill of a related business (SBS Paper) for a total consideration of £9.0m (£8.6m cash plus acquired net debt).

The acquired business processes around 100,000 tonnes of paper and card every year.

"The acquisition of this paper collection and processing business is in line with the group's strategy of expanding its waste management activities, particularly in collection and recycling," said Viridor's Chief Executive Colin Drummond.

"The acquisition is expected to be earnings enhancing in its first full year of operation."

Pennon announced in August that trading at Viridor since the start of the fiscal year (March 31st) was significantly below the high level of last year's first half as the division was "not immune to the difficult conditions in the world economy."