Biffa completes Esterform acquisition to create integrated PET recycling business

Biffa has completed the acquisition of Esterform, a PET pre-form and bottle manufacturer, merging it with the waste management company's existing PET recycling operations to create an integrated circular packaging business ahead of the UK's Deposit Return Scheme launch in October 2027.

The transaction, announced yesterday (1 Oct), follows an initial investment in Esterform by Biffa in 2023. Under the arrangement, Esterform and Biffa's PET recycling operations will trade as Esterpet, operating as a wholly owned portfolio business within the Biffa Group.

Esterform operates manufacturing sites in West Yorkshire and Worcestershire, converting recycled PET pellets into pre-forms that are blow-moulded into bottles and containers for drinks, food, personal care and household products.

Biffa acquired Esterpet Ltd, a North Yorkshire-based PET plastic recycler, in 2023. That facility converts 25,000 tonnes of plastic flakes annually into high-purity plastic pellets.

Planning for DRS

The UK government confirmed at the start of this year that a Deposit Return Scheme will launch in England, Scotland and Northern Ireland in October 2027, requiring consumers to pay a refundable deposit on single-use drinks containers made from PET plastic, aluminium and steel ranging from 150ml to three litres.

An estimated 30 billion single-use drinks containers are purchased annually across England, Northern Ireland and Scotland, including 12 billion plastic drinks bottles.

Legislation passed in January 2025 aims to collect 70 per cent of containers by 2028, increasing to 90 per cent by 2030.

Commenting on the deal, Michael Topham, Chief Executive Officer at Biffa, said: "After making an initial investment in Esterform in 2023, we have now completed the acquisition to strengthen our capabilities in closed-loop PET recycling and packaging.

“Combining Biffa's PET recycling assets with Esterform's manufacturing expertise and capabilities creates an end-to-end circular PET packaging solutions provider ahead of the introduction of the UK's Deposit Return Scheme."

Mark Tyne, Founder and Director at Esterform, said: "This marks a new chapter for Esterform. Becoming a wholly owned part of the Biffa Group allows us to work towards delivering circular PET packaging solutions for the UK market. With continued investment and support from Biffa, we're positioned to meet the demand for packaging ahead of the Deposit Return Scheme, while maintaining the expertise that our customers value."

The company stated that Esterform and Esterpet will receive investment from Biffa to provide circular solutions for food and drink manufacturers, delivering food grade recycled PET and pre-form bottles and containers from materials collected for recycling in the UK.

Biffa's HDPE and PP recycling operations at Redcar, including its closed-loop recycling operation for HDPE milk bottles, will continue to trade as Biffa Polymers.

Currently, Biffa converts 165,000 tonnes of plastic annually into recycled polymers at its plants in Seaham, Redcar and Washington.