Major UK acquisition for Aggregate Industries
IN their largest UK acquisition since being formed in 1997, Aggregate Industries have acquired a substantial proportion of the assets being divested by Anglo American following their recent purchase of Tarmac.
Aggregate Industries are paying a total of £29 million in cash - £24 million on completion and a further œ5 million deferred for six months - for eight quarries, nine coated-stone plants, five ready-mixed concrete plants and one mortar plant. All the operations are strategically located in Aggregate Industries' Midlands, North-West and Scottish regions, where they will significantly strengthen the group's market positions.
The new businesses had unaudited sales of £36.4 million in the year to 31 December 1999 and are expected to make a positive contribution to earnings in their first full year of ownership. The acquisitions will also increase Aggregate Industries' reserves by 44 million tonnes, 29 million tonnes of which are already consented.
Commenting on the deal, Peter Tom, Aggregate Industries' group chief executive, said: 'This transaction represents a rare opportunity to make a substantial addition to our UK operations. The assets are highly complementary to our existing businesses and will yield significant haulage, supply and operational benefits.'
In Scotland the acquired operations are: Dumbuckhill and Croy quarries; Ravelrig, Haverall Wood, Merklands, Morrinton and Croy coated-stone plants; Edinburgh and Ratho ready-mixed concrete plants; and a mortar plant, also in Edinburgh.
The operations acquired in North-West England comprise: Buckton Vale, Waddington Fell and Faugh quarries; a coated-stone plant at Weaste (Salford); and ready-mixed concrete plants at Preston, Altham and Rawtenstall.
Midlands acquisitions comprise: Topley Pike, Haughmond Hill and Crich quarries; and coated-stone plants at Topley Pike, Stoke and Halton East.
Following Hanson plc's recent acquisition of 14 Tarmac Group operations for £32.9 million, this latest acquisition by Aggregate Industries completes the bulk of Anglo American's disposals.
