Waste firm buys Midlands rival to meet demand

Waste composting company TEG Group today announced plans to buy a Midlands rival for up to £6m in order to give it more capacity to deal with contracts in the North West.

Chorley-based TEG is one of the subcontractors on the £3.8bn Greater Manchester Waste PFI project led by Viridor Laing.

TEG said it had raised £6.8m via a placing with institutional investors to buy Simpro, which owns six composting sites in the Midlands.

The deal gives TEG a total of 10 operating sites in the UK, increasing total processing capacity from 115,000 tonnes per annum to 295,000 tonnes per annum.

TEG said this would give it “necessary ‘overflow' capacity from some of its existing North West contracts”.