Breedon buys out C&G
First publishedon www.AggBusiness.com
UK-based Breedon Aggregates has announced that it has reached an agreement with administrators to buy out C&G Concrete for £10.15million. Breedon has said that the acquisition is an excellent geographical and operational fit for the company.
“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,” said Breedon executive chairman Peter Tom. “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.”
C&G operates three sand and gravel quarries and 13 ready mixed concrete and mortar plants in Lincolnshire, Cambridgeshire and Humberside. In 2010 C&G produced 330,000tonnes of aggregates and 155,000m3 of concrete, mortar and screeds. Sales revenue in 2010 was approximately £12million.
News of the acquisition comes as Breedon announces its results for the first half of the year, which show a 17.5% increase in turnover to £84.7million and a 31.3% rise in underlying EBITDA to £8.4million. The company reported gains in aggregates, ready mixed concrete and asphalt volumes, as well as a return to profitability in its contracting business as the driving forces behind the growth.
Commenting on the results, Tom said, “While the year on year improvements in the first six months will not be sustained at the same level in the second half of 2011, we are confident of delivering a strong performance for the year, comfortably in line with market expectations”