Acquisition of Humberside Aggregates Limited

RNS Number : 6667M

Breedon Group PLC

01 August 2017

 

   NEWS RELEASE

    1 August 2017                                                                                                                                            

BREEDON GROUP PLC ("Breedon" or "the Group")

Acquisition of Humberside Aggregates Limited for £9.0m

Breedon, the UK's largest independent construction materials group, announces that it has today completed the acquisition of Humberside Aggregates Limited ("Humberside") for a total consideration of £9.0 million.*

Humberside is a leading independent sand & gravel quarry and aggregates merchanting business based at North Cave near Hull in East Yorkshire, employing around 30 people.  It supplies a broad range of customers including ready-mixed concrete and mortar producers, various Government agencies, local authorities, and local and national building and civil engineering contractors. 

In the year to 30 April 2017, Humberside reported an underlying EBITDA of £2.1 million on revenues of £14.9 million.  It has approximately 3.1 million tonnes of mineral reserves, with the potential to secure additional reserves in the future.

The purchase price is being satisfied by the payment of £8.3 million in cash funded from the Group's existing resources, together with the assumption of £0.7 million of debt.

Commenting on the acquisition Pat Ward, Breedon's Group Chief Executive, said: "This acquisition provides Breedon Southern with a valuable source of aggregates in the important markets of East Yorkshire and Humberside, where we already operate a sizeable ready-mixed concrete business.  It will enable us to create value by internalising the supply of sand and gravel to our network of readymix and mortar plants, whilst serving a strong existing customer base throughout the region.

"Humberside also operates a successful merchanting business, supplying limestone to builders' merchants in the region.  A proportion of this material currently comes from Breedon's quarry at Holme Hall, giving us the opportunity to optimise these volumes and benefit from improved logistics planning.

"We look forward to welcoming all our new colleagues from Humberside to the Breedon Group."

* Subject to completion adjustments

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The information contained within this announcement is deemed by the Group to constitute inside information under the Market Abuse Regulations (EU) No. 596/2014.

Note to editors

Breedon Group plc is the UK's largest independent construction materials group.  It operates the country's largest cement plant, two cementitious import terminals, around 60 quarries, 30 asphalt plants, 200 ready-mixed concrete plants and three concrete products plants nationwide.  The Group employs around 2,300 people and has more than 750 million tonnes of mineral reserves and resources.  Its strategy is to continue growing organically and through acquisition of businesses in the UK heavyside construction materials market.

For further information:

Breedon Group plc
Pat Ward, Group Chief Executive 
Rob Wood, Group Finance Director
01332 694444

Stephen Jacobs, Head of Communications
07831 764592

Cenkos Securities plc
Max Hartley (Nomad)
020 7397 8925 

Numis Securities (joint broker)
Heraclis Economides/Ben Stoop
020 7260 1000

 

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