East Yorkshire-based quarrying and aggregates merchanting business acquired for £9.0 million
BREEDON, the UK’s largest independent construction materials group, have today completed the acquisition of Humberside Aggregates Ltd for a total consideration of £9.0 million, subject to completion adjustments.
Humberside – a leading independent sand & gravel quarry and aggregates merchanting business based at North Cave, near Hull, in East Yorkshire – employ around 30 people and supply a broad range of customers, including ready-mixed concrete and mortar producers, various government agencies, local authorities, and local and national building and civil engineering contractors.
In the year to 30 April 2017, Humberside reported an underlying EBITDA of £2.1 million on revenues of £14.9 million. They have approximately 3.1 million tonnes of mineral reserves, with the potential to secure additional reserves in the future.
The purchase price is being satisfied by the payment of £8.3 million in cash, funded from the Breedon’s existing resources, together with the assumption of £0.7 million of debt.
Commenting on the acquisition, Pat Ward, Breedon’s group chief executive, said: ‘This acquisition provides Breedon Southern with a valuable source of aggregates in the important markets of East Yorkshire and Humberside, where we already operate a sizeable ready-mixed concrete business.
‘It will enable us to create value by internalizing the supply of sand and gravel to our network of readymix and mortar plants, whilst serving a strong existing customer base throughout the region.
‘Humberside also operate a successful merchanting business, supplying limestone to builders’ merchants in the region. A proportion of this material currently comes from Breedon’s Holme Hall Quarry, giving us the opportunity to optimize these volumes and benefit from improved logistics planning.
‘We look forward to welcoming all our new colleagues from Humberside to the Breedon Group.’
