Breedon acquire Huntsmans Quarries
£15 million acquisition expands Breedon’s regional presence into Gloucestershire and Worcestershire
BREEDON Aggregates, the UK’s largest independent aggregates business, have acquired Huntsman’s Quarries Ltd, a long-established aggregates company based in the North Cotswolds, for a cash consideration of £15 million.
Huntsmans operate a substantial limestone quarry and ready-mixed concrete plant at Naunton, between Cheltenham and Chipping Norton, together with a second ready-mixed concrete plant at Evesham in Worcestershire and a fleet of 20 haulage and mixer trucks. The company also owns three further quarries near Naunton which are currently dormant.
In 2013 the business sold over 300,000 tonnes of aggregates and generated sales of approximately £8 million with EBITDA of approximately £2 million. The business has performed well in 2014 with year-on-year revenues ahead in the first quarter.
In total, Naunton has planned mineral reserves of 4 million tonnes and potential further resources of 6 million tonnes. The mineral produced by Huntsmans is a high-quality, harder-than-average Cotswold stone which is ideal for natural walling and is also particularly suitable for Type 1 sub-base and ready-mixed concrete. In addition, the business supplies natural roofing slate, decorative blocks, agricultural lime and blue clay.
The acquisition gives Breedon access to the affluent and buoyant Cotswolds market, together with a new presence in the north Worcestershire concrete market. The consideration will be settled in cash from the company’s existing resources and Breedon will also assume Huntsmans’ debt of up to £2 million.
Commenting on the acquisition, Breedon’s chairman, Peter Tom CBE, said: ‘Huntsmans is a well-run business making good margins in a strong local market. We see great potential both for the quarry and for the newly refurbished concrete plant at Evesham, which has just reopened, and also expect to secure some useful synergies and cost savings.
‘This is exactly the kind of acquisition we’re always on the lookout for. It builds our regional presence, extends our product range and gives us access to new markets, whilst adding further value for our shareholders. We are continuing to pursue other similar opportunities elsewhere in the UK.’
