Landmark Waste Management Deal Struck
Introduction
Leading South West solicitors Ashfords have helped establish an innovative Public Private Partnership (PPP) deal which is the first of its specific type in the UK waste industry.
Ashfords recently supported Pennon Group Plc's in-house legal team in advising Viridor Waste Management Limited (a subsidiary of Pennon Group Plc), on its ground-breaking Public Private Partnership with Somerset County Council under which Viridor was also required to acquire Wyvern Waste Services Limited.
The PPP involve Leading South West solicitors Ashfords have helped establish an innovative Public Private Partnership (PPP) deal which is the first of its specific type in the UK waste industry.
In addition, the deal also includes a long-term strategic partnering agreement under which Viridor will provide Somerset County Council with strategic support and assistance in the development of its waste strategy, along with the development of future waste projects, plus a project agreement for the design, build, finance and operation of a new waste treatment facility.
Wyvern Waste Services Limited, the waste disposal company established by Somerset County Council in 1992, was acquired from Somerset County Council for £25 million.
Whilst Pennon Group's in-house legal team dealt with the overall commercial aspects and legal project management of the acquisition, Ashfords associate Ruth Murray advised on the PPP aspects of the transaction, and fellow Ashfords associate Annelie Joyce advised on the corporate aspects of the acquisition of Wyvern Waste Services Limited.
Ashfords Partners George Wilkinson, Mark Lomas and Annabel Holyoak also provided support on pensions, commercial and property aspects of the project respectively. Somerset County Council was advised by Eversheds LLP.
Viridor Waste Management Limited, with its headquarters in Taunton, is a leading provider of essential waste and recycling services in the UK. It has core competencies in waste disposal by landfill, the generation of electricity from landfill gas and the operation of materials recycling facilities. It also operates waste transfer stations, civic amenity sites and composting facilities in a number of regions of the UK and has a waste collection fleet of 365 vehicles, a liquid waste treatment plant, and a clinical waste incinerator.
Commenting on the project, Colin Drummond Chief Executive of Viridor Waste, said, "This acquisition fits very well with Viridor Waste's strategy of expanding its landfill, power generation and long term integrated municipal contract businesses in key regions of the UK".
Ruth Murray of Ashfords said "We were delighted to act for Viridor on this innovative waste management PPP. Local authorities are under increasing pressure to consolidate their waste management arrangements in order to meet the targets set by the EU Landfill Directive. This project represents a positive move forward in achieving a contractual structure which has accommodated and overcome some of the complexity and difficulties faced over recent years in the delivery of waste management projects."
Ashfords' Projects/PFI team advises contractors and authorities on a range of PFI and PPP projects nationally and is supported by PFI/Projects support teams embracing Construction, Procurement, Public Law, Planning, Property, Employment and Pensions and Banking.
Ashfords' Corporate team acts on corporate transactions nationally and internationally and has been recognised as the South West's lead advisor on Corporate deals in 2005.
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