Greenstar to acquire Veolia waste division

WASTE management specialist Greenstar has reached agreement to acquire the Irish-based commercial waste and recycling operations of French company Veolia Environmental Services, for an undisclosed sum. The deal is dependent on Competition Authority approval.

It will not include Veolia’s hazardous waste management business, which will remain part of its strategic plan for Ireland. The company has operated here since the early 1990s with offices in Limerick, Dublin, Cork, Waterford and Newry.

As a result of this transaction, Greenstar, which is owned by renewable energy and waste management group NTR, will expand into Limerick and the North and strengthen its existing presence in Cork, Dublin and Waterford.

“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... This acquisition enables us to bring increased efficiency to our operations, drive better and innovative recycling and further improve the price and product offering to our customers,” said Greenstar’s chief executive Neil Parkinson.

At NTR’s annual general meeting last month, it was announced that Greenstar had successfully refinanced its debt facilities by120m and hinted that the funds could help the company respond to opportunities arising from the potential consolidation in the Irish waste management sector.

While NTR chief Jim Barry at the time refused to comment on Greenstar’s specific acquisition outlook he did hint bolt-on buys could be on the agenda, given that organic growth could be difficult in the current economic climate.