Breedon to acquire assets from Marshalls
Breedon Aggregates England agree deal to purchase four aggregates quarries from Marshalls Mono
BREEDON Aggregates Ltd have today confirmed that their wholly owned subsidiary Breedon Aggregates England Ltd has reached agreement and exchanged contracts to purchase certain assets in England and Wales from Marshalls Mono Ltd for an initial consideration of £17.5 million in cash. The final consideration will be up to £19.0 million, dependent on certain conditions subsequent to the acquisition.
As reported by Agg-Net earlier this week, the assets to be acquired comprise freehold and leasehold quarries at: Clearwell, near Lydney, in Gloucestershire, which produces primarily high-quality limestone aggregates; and sand and gravel quarries located at Dunsville, near Hatfield, in South Yorkshire; Astley Moss in Greater Manchester; and Mold in North Wales, which operates under the Lloyds Sand and Gravel trading name. The acquisition agreement also includes an option to develop greenfield sand and gravel resources near Saredon, Staffordshire.
Together, the four existing quarries will provide Breedon with an additional 13 million tonnes of mineral reserves and resources, and the potential for additional mineral prospects of 5 million tonnes. Aggregate production from the four quarries was 0.9 million tonnes in 2012, generating revenue of approximately £10 million and an EBITDA of £2.3 million.
Breedon say the acquisition represents a move into new but contiguous geographical markets for the Group, but is in line with their stated strategy of acquiring earnings-enhancing aggregates-related businesses with strong potential for performance improvements and/or synergy benefits.
Completion of the deal is subject to Breedon Aggregates completing the £61 million placing announced on 10 April 2013, and the passing of resolutions and other conditions at an Extraordinary General Meeting of Breedon Aggregates on 26 April 2013.