Biffa processes waste for two million people in London at its Edmonton recycling plant.
(Picture: Biffa)Bin collector Biffa today landed a £1.4 billion takeover bid from a US private equity firm.
The offer from Energy Capital Partners of 445p per share represents a 37% premium over yesterday’s closing price of 325p.
The company, which processes waste for two million people in London, said in a statement: “The Board of Biffa has concluded that should a firm offer be made on the same financial terms as the Proposal it would be minded to recommend it to Biffa shareholders.”
Biffa shares soared 28% after markets opening this morning to reach 417p.
It comes as the waste management company said it could end up with a liability anywhere in the range of £170,000 to £153 million as a result of an enquiry by UK tax authority HMRC over how it has classified waste at its facilities.
Biffa said it rejects the concerns but was cooperating with HMRC’s enquiries while seeking advice from accounting firm Ernst & Young. No tax claim has so far been received from HMRC, the company said, and there was no certainty that it would bring a claim.
High Wycombe-based Biffa employs more than 9,000 people in the UK and has a fleet of over 2,900 collection vehicles. The company posted revenues of £1 billion in 2021, with operating profits of £44 million — a 51% drop on 2020 profits of £91 million.
Biffa’s material recycling plant in Edmonton processes north London waste including from Camden, Enfield, Haringey and Islington.
Last year, Biffa launched the UK’s largest fleet of electric waste vehicles as part of a £10 million deal with Manchester City Council.
In May, around 65,000 households in East Sussex saw bin collections disrupted by a month-long bin strike after Biffa refuse workers took industrial action over pay and working conditions.
New Jersey-based Energy Capital Partners invests in power generation and renewable infrastructure and has a $12.8 billion (£10.3 billion) investment portfolio according to a filing with the US Securities and Exchange Commission.
