Greenstar UK buys 75% of rival

Irish-owned waste manager Greenstar UK has mopped up a British rival in a deal valued at under €10 million.

Greenstar has bought 75 per cent of Waste Exchange Services Ltd (WES), a specialist in plastics recycling based in the northeast of England.

Irish utility NTR plc owns Greenstar UK, which has been building its presence in the British market over the last five years.

Neither side revealed the sale price of the WES stake. However, industry sources say it is a "mid-size" deal and value it at under €10 million.

According to accounts lodged with the UK companies registrar, WES had net assets of close to €1.5 million at the end of 2005. Its revenues are in the region of €10 million a year.

NTR is best known for its ownership of the West-Link toll bridge in Dublin. The Government has agreed to buy the company out in return for a payment totalling €600 million over the next 13 years. However, the group has been shifting focus from roads to energy, biofuels and waste management over the last five to six years. It has investments in Ireland, the UK, Europe and the US.

A spokesman explained that the WES deal was part of its strategy to grow its UK business through buying up rivals and establishing new operations.

"The acquisition of WES is part of this development. WES will focus on the recycling of all of Greenstar UK's plastics."

The Irish company has pledged to invest in developing WES's equipment and infrastructure. As part of the deal, WES managing director James Donaldson will keep a significant stake in the company.

NTR also operates an Irish waste-management business under the Greenstar flag. However, the two are separate operations and, beyond their ownership, are not related to each other.