Breedon to acquire Scottish assets from Aggregate Industries
Company also in advanced discussions with Marshalls over possible acquisitions in England and Wales
BREEDON Aggregates have agreed a deal to acquire certain Scottish assets from Aggregate Industries and are also in advanced discussions with Marshalls over the possible acquisition of a parcel of assets in England and Wales.
The Scottish acquisition will see Breedon pay Aggregate Industries £34 million in cash for 11 quarries (six of which are active), four asphalt plants, seven ready-mixed concrete plants and two concrete block plants in Grampian, Tayside, Highlands and the Hebrides.
The deal will more than double Breedon’s mineral reserves and resources to almost 400 million tonnes, enough to last 76 years at current extraction rates.
Meanwhile, the possible acquisition of assets in England and Wales could add a further four quarries and up to 13 million tonnes of mineral reserves and resources, for a cash consideration of up to £19 million.
The assets under discussion are at Clearwell, near Lydney, Gloucestershire, which produces primarily high-quality limestone aggregates, and sand and gravel quarries at Dunsville, near Hatfield, South Yorkshire, Astley Moss in Greater Manchester and Mold in North Wales. An option to develop sand and gravel resources near Saredon, Staffordshire, is also being discussed.
Breedon chairman Peter Tom (pictured) said: ‘These acquisitions are consistent with our long-term aim of becoming the lowest-cost operator in our chosen markets. We believe that they will put us in an even stronger position to benefit from any UK economic recovery.
‘We will remain focused on further improving our performance and our management team has demonstrated its ability to deliver solid results in the most difficult market conditions.
‘The previous acquisitions made by the Group have all added significant value to our core business and this gives us confidence in our ability to repeat this with future deals.’
Breedon have conditionally raised £61 million through a placing at 21p per share to fund the acquisitions and will retain the benefit of their £15 revolving credit facility for additional opportunistic acquisitions.
