Pat Ward, group chief executive of Breedon, said the company has had a longstanding ambition to expand its footprint in the UK’s largest construction materials market.
"This joint venture enables us to secure immediate critical mass in Greater London, in collaboration with an experienced local partner, with the potential to develop a business of significant scale in the capital over the next few years," said Ward.
Three of Breedon's existing ready-mixed concrete assets will be combined with those of Capital Concrete, Brett’s established ready-mixed concrete operation in London.
It adds that the enlarged business, which will continue to trade as Capital Concrete, will provide both partners with a strong platform from which to develop their offerings to the London market.
Capital Concrete currently operates seven ready-mixed concrete plants in Bow, Croydon, Romford, Rainham, Wembley, Silvertown and Staines. Breedon will contribute its plants in Cricklewood, Feltham and Enfield, together with £3.1m in cash, in return for a 43% interest in the joint venture. The balance will be owned by Brett (43%) and management (14%).
Completion of the transaction is expected to take place on 1 December 2019.
