Biffa plc (LON:BIFF), has today announced a significant strategic step in its commitment to the circular economy with the acquisition of Company Shop Limited (‘CSG’) for an upfront enterprise value of £82.5m.
CSG is the UK’s leading and largest redistributor of surplus food and household products. It prevents waste by identifying surplus produce and then collecting, processing and redistributing it for sale through its unique network of membership-based outlets. Surplus produce includes production overruns, trial products, or produce that has been incorrectly labelled or packaged, which without intervention would be destined to become waste. CSG is the only commercial redistributor of scale in the UK, with unrivalled operational capabilities and infrastructure which underpin its strong growth plans.
Key highlights of the acquisition:
· Leverages Biffa’s position as the UK’s leading sustainable waste management company, further improving its capability to support its customers’ waste reduction and recycling targets
· Strengthens Biffa’s commitment to unlocking circular economy innovation for its customers and enhances Biffa’s service provision across the entire waste hierarchy, expanding the Group’s offering in commercial surplus redistribution through CSG’s unique and market-leading business model
· Compelling growth opportunities with increasing regulatory, social and environmental tailwinds underpinning a significant addressable market opportunity
· Funded from existing committed debt facilities and immediately earnings enhancing on completion
Michael Topham, Chief Executive of Biffa plc, commented:
“The acquisition of Company Shop Group strengthens Biffa’s leadership position in the UK circular economy. Its redistribution services complement Biffa’s established waste and recycling services, and supply of closed loop recycled raw materials. As the only commercial redistributor of scale in the UK, Company Shop Group is the market-leader in a growing sector, with a strong, credible growth plan which we will deliver together. Biffa and Company Shop Group share a common set of goals, including the continued development of profitable, sustainable waste management solutions while making a meaningful contribution to society. We welcome all of Company Shop Group’s members, partners and staff to Biffa and look forward to the next stage of the business’ development.”
Steph McGinty, Group Managing Director of Company Shop Group, commented:
“We are proud to be the UK’s leading redistributor of surplus food and household products. We are a passionate business working for our industry, our colleagues, our members and our communities; we call it Corporate Surplus Responsibility.
Hallmarked by long-standing and powerful partnerships, at the heart of our business is the understanding that big challenges need big solutions, and these are always better delivered in partnership. Together, as part of Biffa plc and aligned in vision and purpose, we will continue to innovate and grow, enabling us to provide even more sustainable solutions for all our stakeholders. I am delighted to lead Company Shop Group in this exciting new chapter of its journey.”
John Marren, Founder of Company Shop Group, commented:
“Biffa plc is another vanguard, changing the way that people think about waste. Our aligned values and shared ambition will enable both the delivery of a truly unique circular economy proposition to industry alongside continued growth in the important role that sustainable redistribution plays. I am proud that this decision will enable Company Shop Group to step confidently into the future, as part of the global movement to reduce waste in our industry and our society. Today, more than ever, we are called to address the climate emergency, build our economy and support our communities.”
