Breedon Aggregates agrees acquisition of assets from Marshalls

Further to the announcement made by 894 Breedon Aggregates, and separately by 3071 Marshalls, on 10 April 2013, Breedon Aggregates England has now reached agreement and exchanged contracts to purchase certain assets from Marshalls Mono for an initial consideration of £17.5 million (€20.55 million) in cash.

The final consideration will be up to £19 million (€22.3 million), dependent on certain conditions subsequent.

The assets to be acquired comprise freehold and leasehold quarries at Clearwell, near Lydney, County Gloucestershire, England, which produces primarily high quality limestone aggregates, and sand and gravel quarries at Dunsville, near Hatfield, South Yorkshire and Astley Moss in Greater Manchester (both England), and Mold in North Wales, which operates under the Lloyds Sand and Gravel trading name (the Quarries).

The acquisition agreement also includes an option to develop sand and gravel resources near Saredon, County Staffordshire, England.

The Quarries will provide an additional 13 million tonnes of mineral reserves and resources to the group and the potential for additional mineral prospects of 5 million tonnes.

The Quarries represent a move into new but contiguous markets for the group.  Aggregate production from the Quarries was 0.9 million tonnes in 2012, generating revenue of approximately £10 million (€11.75 million) and an EBITDA of £2.3 million (€2.7 million).  

The acquisition remains conditional, inter alia, on the passing of the resolutions at the Extraordinary General Meeting of Breedon Aggregates to be held on 26 April 2013, and certain other conditions precedent.