Shanks Group plc, a leading waste management business, yesterday announced that it has signed a binding agreement to sell the majority of its UK Solid Waste business to Biffa, another waste management company.

Additionally, Shanks announced that it will exit its remaining UK Solid Waste business, with processes underway to sell its Blochairn and Kettering materials recycling facilities. However, the company announced that it will retain its profitable Elstow facility which serves municipal customers in Bedfordshire.

UK Solid Waste operations represented a loss for Shanks and the company considered it didn't have a sustainable competitive advantage anymore.

Shanks expects to generate £14 million of net cash proceeds from the sale, £8 million from the UK Solid Waste business and £6m million from the sale of Blochairn and Kettering recycling facilities.

Following the transactions, the Shanks' UK operations will be focused on its profitable and growing UK Municipal business, which provides recycling and waste management services to local authorities in the UK, and is underpinned by long-term contracts.