Breedon in £16.5m Tarmac swoop
Breedon, the Leicestershire-based construction materials group, is set to buy four quarries and an asphalt plant for £16.5m from Tarmac.
The deal includes the transfer to Tarmac of 27 of Breedon’s ready-mixed concrete plants and a payment of £4.9m in cash.
The operations to be acquired by Breedon include quarries in Scotland, Cumbria and North Wales, together with a quarry and asphalt plant in West Wales. The ready-mixed concrete plants to be divested by Breedon are in multiple locations extending from Dumfries in Scotland to Exeter in Devon.
Pat Ward, Breedon’s group chief executive, said: “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.
