Ennstone to acquire Breedon
ENNSTONE plc, who earlier this year acquired a 7.2% stake in Breedon plc for £2.66 million, are to purchase all remaining shares in the Midlands-based quarrying and housebuilding company for a cash consideration of around £50 million.
Breedon, who own two limestone quarries on the Leicestershire/Derbyshire border as well as a Nottingham-based housebuilding and commercial property business, reported profits of £5.1 million on sales of £21.8 million for the year ended 31 January 2000.
It is Ennstone's intention to dispose of the housebuilding and property business as soon as possible and to merge Breedon's quarrying activities with their own Ennstone Ideal sand and gravel operation.
Commenting on the deal, Ennstone chairman Vaughan McLeod said: 'Our plans to dispose of Breedon's housebuilding operations should give us further financial resources with which to continue our participation in the industry rationalization process and should allow us to make further bolt-on acquisitions as opportunities arise.'
For the year ended 31 December 1999, Ennstone reported profits of £2.7 million on sales of £39.1 million.