Breedon swoops for contract surfacing business in £13.5m deal

East Midlands-based construction materials group Breedon has announced a £13.5 million acquisition that will further extend its reach in Wales.

The company has acquired Roadway Civil Engineering & Surfacing, an integrated asphalt production and contract surfacing business based in Llay near Wrexham.

The deal coincides with the opening of a new asphalt plant at the firm’s Wrexham site.

Subject to completion adjustments, the total consideration comprises £10.8 million payable in cash on completion and up to £2.7 million of deferred consideration payable in cash on performance over the next five years.

The Welsh company’s management will remain in place.

Mike Pearce, managing director of Breedon Southern, said: “This acquisition significantly strengthens our contract surfacing operations and establishes Breedon as a fully integrated business in North Wales.

“The Wrexham plant will expand our asphalt capacity in the region, complementing our units at Dowlow, Minffordd and Leaton, and enable us to offer a full asphalt supply and lay service throughout North Wales, Shropshire, Cheshire and Merseyside. Roadway also provides an additional route to market for aggregates from our quarries at Minffordd, Borras, Denbigh and Leaton.

“We are particularly pleased that Roadway’s management team has committed to remain with the business.”

Pat Ward, Breedon’s group chief executive, added: “This is a further step in our regional expansion, acquiring an integrated asphalt and contract surfacing business in an area of the UK where we have been seeking to strengthen our presence for some time. It demonstrates our consistent ability to secure value-enhancing acquisitions and we remain confident of being able to continue adding value in this way.”