Breedon and Brett to combine assets in London
Breedon Group to form London ready-mixed concrete joint venture with Brett and Capital Concrete
BREEDON Southern Ltd, part of Breedon Group plc, have today announced plans to form a ready-mixed concrete joint venture in London with Robert Brett & Sons Ltd and the senior management of Capital Concrete.
Three of Breedon’s existing ready-mixed concrete assets will be combined with those of Capital Concrete, Brett’s established ready-mixed concrete operation in London.
The enlarged business, which will continue to trade as Capital Concrete, will provide both partners with a strong platform from which to develop their offerings to the London market.
Capital Concrete currently operate seven ready-mixed concrete plants in Bow, Croydon, Romford, Rainham, Wembley, Silvertown and Staines.
Breedon will contribute their plants in Cricklewood, Feltham and Enfield, together with £3.1 million in cash, in return for a 43% interest in the joint venture. The balance will be owned by Brett (43%) and management (14%).
Commenting on the agreement, Pat Ward, group chief executive of Breedon, said: ‘We have had a long-standing ambition to expand our footprint in the UK’s largest construction materials market.
‘This joint venture enables us to secure immediate critical mass in Greater London, in collaboration with an experienced local partner, with the potential to develop a business of significant scale in the capital over the next few years.
‘We are very much looking forward to working with the outstanding management team in Capital Concrete and this also gives us a great opportunity to strengthen our relationship with Brett.’
Bill Brett, chairman of Brett Group, said: ‘I am delighted that Breedon have become a joint-venture partner in Capital Concrete, as this consolidates our investment and forms part of the ongoing plans to develop and grow the business.’
Luke Smith, managing director of Capital Concrete, added: ‘This is exciting news for Capital Concrete – we are strengthening our offering and will now have 10 ready-mixed plants within the M25.
‘We have a team with industry-leading experience and expertise and who are focused on offering customers excellent service every day – this announcement shows our commitment to grow our geographic reach in London.’
Completion of the transaction is expected to take place on 1 December 2019.