Breedon to acquire four Tarmac quarries
Deal to be satisfied by transfer of 27 ready-mixed concrete plants plus £4.9 million in cash
BREEDON, the UK’s largest independent construction materials group, have agreed to acquire four quarries and an asphalt plant from Tarmac, a CRH company, for a total consideration of £16.5 million, to be satisfied by the transfer of 27 ready-mixed concrete plants to Tarmac plus a payment of £4.9 million in cash.
The deal is conditional on approval by the Competition & Markets Authority (CMA).
The operations to be acquired by Breedon comprise: Daviot Quarry, Inverness; Low Plains Quarry, Penrith; Borras Quarry, Wrexham; and Minffordd Quarry and asphalt plant, Porthmadog.
The 27 ready-mixed concrete plants to be divested by Breedon are in multiple locations extending from Dumfries in Scotland to Exeter in Devon.
Breedon say the deal is in line with their strategy of expanding their aggregates portfolio, in this case adding approximately 25 million tonnes to the Group’s mineral reserves and resources, and furthering the development of their asphalt capacity.
The transaction, which will also streamline Breedon’s ready-mixed concrete network, is not expected to have a material impact on the Group’s earnings.
Pat Ward (pictured), Breedon’s group chief executive, commented: ‘This deal brings significant benefits: it adds to our reserve base; it is margin-enhancing; it releases value from peripheral readymix plants; and it will enable us to replace third-party aggregates providers with our own sources of supply.
‘It is also a great example of how we can work with our larger peers – in this case CRH, one of the world’s most successful global building materials companies – to benefit customers and other stakeholders on both sides.’
The transaction is expected to close in the first half of 2018, subject to approval by the CMA.