Cory continues to strip waste businesses as Reconomy extends growth
The group of businesses, which include UK Nationwide Skip Hire Limited (trading as Skippy Nationwide), Skips @ Home Limited (Skip Hire UK) and Cory Environmental Recycling Services Limited, was officially transferred to Reconomy last week (21 July).
Last month, Biffa announced that it had acquired Cory’s waste collection business for £13.5 million, transferring a number of local authority contracts along with it.
Like the Biffa deal, Reconomy’s acquisition comes after a strategic review by Cory’s board concluded that the brokerage business was no longer core to the company’s long-term future.
Following this latest deal, Nicholas Pollard, Cory’s Group CEO, explained that Cory’s strategy is to simplify the group’s structure and focus on the core businesses of Landfill & Gas and Riverside Resource Recovery & London Operations. He said: “Both of these businesses invest in development and operation of infrastructure to provide waste management, materials recycling, waste disposal and energy generation.
Pollard added: “Reconomy is an excellent home for Brokerage and we wish them every success for the future.”
Together, the three companies included in the transaction reported revenues of £13 million for the year ending 2015, employing 38 people.
The move by Reconomy, like Cory based in Shropshire, to take on the companies follows its purchase of Countrywide Waste Management Ltd and Network Waste in 2015. As a result of the acquisition Reconomy is predicting a pro forma revenue of £125 million by the end of 2016.
Paul Cox, Managing Director of Reconomy, commenting on the deal, said: “Cory Environmental’s brokerage arm is a group of businesses we know very well, being in such close geographical proximity to ourselves. This is an important acquisition for us, with a business that boasts an excellent customer base, which complements that of Reconomy.
“The business has a strong focus on customer service and a company culture that we feel will not only work well with Reconomy, but also help us to grow and enhance our unique approach to waste management.”
“The acquisition of the brokerage businesses from Cory Environmental Group further underlines Reconomy’s position as an industry leader in the waste sector and demonstrates that businesses want more from a waste provider than simply disposing of their waste.
There has never been a better time to be part of Reconomy as we continue to grow, look ahead and develop ourselves well beyond the expectations of a traditional waste management provider.
“We will continue to invest in each business within our portfolio and look to strengthen our workforce in the coming weeks and months to ensure we maintain a first class service for our customers. Whilst uncertainty remains in the UK construction market, Reconomy continues to provide an alternative approach to customers that delivers great service, reduced hassle and cost efficiencies.”