Breedon Aggregates acquire C&G Concrete
UK’s largest independent aggregates producer completes first bolt-on acquisition
BREEDON Aggregates Ltd have reached agreement to acquire, through a wholly owned subsidiary, the business and assets of C&G Concrete Ltd, who went into administration in May 2011, from the joint administrators for £10.15 million in cash.
C&G employ around 130 people and operate three sand and gravel quarries and 13 ready-mixed concrete and mortar plants in Lincolnshire, Cambridgeshire and Humberside. In 2010 C&G produced 330,000 tonnes of aggregates and 155,000 cubic metres of concrete, mortar and screeds. Sales revenue in 2010 was approximately £12 million.
The acquired assets include a substantial and strategically valuable sand and gravel operation at Norton Bottoms in Lincolnshire. C&G also own a number of other assets, including a 286-acre farm with planned mineral deposits near Woodhall Spa in Lincolnshire. In total, the company has planned mineral reserves of 6.6 million tonnes and potential further resources of 17.6 million tonnes.
Breedon Aggregates say the acquisition is an excellent fit both geographically and operationally, linking their existing operations in the East Midlands and East Anglia, and significantly enhancing their reserves and the scale of their ready-mixed concrete business.
As part of the arrangement, Breedon Aggregates have also agreed to acquire certain assets from a related company, F H Gilman & Co., who recently went into administrative receivership.
Commenting on the acquisition, Peter Tom CBE, executive chairman of Breedon Aggregates Ltd, said: ‘We are delighted to have secured such a high-quality business as our first bolt-on acquisition and look forward to welcoming C&G’s employees into the group.
‘C&G has a strong market position and excellent asset base in Lincolnshire and South Humberside, and we see significant growth potential in the business. We also expect to be able to deliver useful synergy savings and operational improvements following the acquisition.’
Mr Tom added: ‘We continue to review a number of other acquisition opportunities as we seek to build on the excellent platform we have created in Breedon Aggregates.’
Following the acquisition of C&G Concrete, Breedon Aggregates Ltd will operate 26 quarries, 18 asphalt plants and 40 concrete (including mortar) plants in England and Scotland. The group employs approximately 830 people and has nearly 200 million tonnes of mineral reserves and resources in the UK.
