Breedon Aggregates, the largest independent aggregates business in the UK, employing around 800 people in England and Scotland, has acquired Scottish assets from Aggregate Industries for £34 million (€39.8 million) and is in advanced stages of a possible acquisition for up to £19 million (€22.3 million). The Scottish acquisition will add six active quarries, four asphalt plants, seven ready-mixed concrete plants and two concrete block plants in Grampian, Tayside, Highlands and Hebrides while group mineral r
Breedon Aggregates, the largest independent aggregates business in the UK, employing around 800 people in England and Scotland, has acquired Scottish assets from Aggregate Industries for £34 million (€39.8 million) and is in advanced stages of a possible acquisition for up to £19 million (€22.3 million).
The Scottish acquisition will add six active quarries, four asphalt plants, seven ready-mixed concrete plants and two concrete block plants in Grampian, Tayside, Highlands and Hebrides while group mineral reserves and resources will more than double to almost 400m tonnes, which is enough to last 76 years at current extraction rates.
The Scottish acquisition would have added approximately 20% to group revenue and 24% to group EBITDA in 2012.
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.
The company has conditionally raised £61 million (€71.5 million) through a placing at 21p per share to fund acquisitions.
The company says the acquisitions will take the group into new, contiguous, geographical markets and are in line with Breedon’s stated strategy of acquiring earnings-enhancing aggregates-related businesses with strong potential for performance improvements and/or synergy benefits.
Peter Tom CBE, Chairman, 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. Weather permitting, the board is confident of making further progress in 2013.”
