Breedon to buy Scottish assets of Aggregate Industries
10/04/2013 Highways Reporters
Breedon Aggregates is set to buy Scottish assets from Aggregate Industries in a deal worth £34 million.
The company has agreed a deal in principle and is also in advanced stages of a possible acquisition of Marshalls worth up to £19m.
The Scottish acquisition will see the company add six active quarries, four asphalt plants, seven ready-mixed concrete plants and two concrete block plants in Grampian, Tayside, Highlands and Hebrides, to its portfolio.
Group mineral reserves and resources will more than double to almost 400 million tonnes: enough to last 76 years at current extraction rates.
It will add approximately 20% to group revenue and 24% to group EBITDA in 2012.
The proposed deal with Marshalls would see the firm acquire a further four quarries and up to 13m tonnes of mineral reserves and resources.
Breedon has conditionally raised £61m through a placing at 21p per share to fund the acquisitions.
Chairman Peter Tom 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.”